Some employees see retirement as life’s Act II, full of freedom and promises of new adventures. But this is not true for everyone! The 2015 Northwestern Mutual “Planning and Progress” survey of employees includes these statistics about retirement that impact many workplaces:
- 62% expect delaying retirement until age 68
- 79% cite financial necessity as the primary reason for postponing retirement
- 40% have not discussed their retirement with an informed professional
Many employees see retirement as a blind jump off a cliff into a scary black void of endless concerns… How do Social Security and Medicare work? How will I fill my days? Have I saved enough? How much can I still work and not negatively impact benefits? Will my spouse and I drive each other crazy with so much free time together? And a pervasive fear of “What don’t I know that could really hurt me?” No wonder so many postpone retirement!
To be clear, it is not acceptable for an employer to assume someone should retire solely due to their age, and it is essential to avoid any semblance of age discrimination. Many older workers are as vital, engaged and productive as ever – perhaps at the highest levels of their entire careers and have no desire to retire because they love their jobs. Still, not retiring out of fear and a lack of informed guidance is a negative reason to stay in the workplace, and likely has negative consequences for employers. So what can you do to make sure this doesn’t happen at your workplace?
MSEC members may take advantage of Career Transition Services (CTS) to support an employee’s transition to retirement. With an assigned coach to target their specific needs, participants are empowered and set up for success. Offering CTS to retiring employees may also provide these benefits to employers:
- Builds your brand as a caring employer.
- Encourages “retirement ready” employees to retire and not fearfully cling to their jobs.
- Improves upward mobility for other employees, engaging and opening opportunities for new talent.
A recent CTS participant shared this feedback with us recently:
“My retirement coach guided me… and opened up a multitude of valuable insights to me which I would never have thought of otherwise. The coaching sessions not only covered the financial aspects of retirement, but also delved into topics on the many anxieties and emotional concerns that affect people right before retirement. Her assistance with signing me up for Medicare and explaining certain aspects of Social Security was a big weight off of my shoulders. As I look back on the previous year I find it amazing as to the difference in how I felt at the beginning of the course, which was nervous and unprepared, and how I feel now at the completion, which is relaxed and ready for retirement. I highly recommend this service to everyone before retiring.”
MSEC helps members with all stages of the employment life cycle; contact us to discuss.