Nearly half of 412 retirement plan sponsors recently polled expect to benefit from Baby Boomers who prolong their careers past age 65. Only 4% of respondents believe employees who postpone retirement will be a negative for companies, whereas 45% anticipate that protracted careers will yield a positive result for employers.
The survey was conducted by an independent market research firm on behalf of BMO Retirement Services.
“Although some companies will continue to offer buyouts and retirement packages to their older staff, our survey suggests that many businesses will be pleased to retain selected Boomer employees,” said Todd Perala, director of relationship management at BMO Retirement Services. "”here appears to be a growing recognition in corporate America that employees in their sixties possess valuable institutional experience and expertise.”
Perala noted that older employees were once widely perceived to create a greater burden on a company’s health plan, limit the job opportunities of younger workers and be less proficient using new technologies. “Despite these common perceptions, our findings suggest that a significant contingent of today's companies see value in maximizing experience,” he said.
Among the other survey results, nearly a quarter of surveyed employers estimate that the percentage of working boomers who postpone retirement could exceed 50% in the years ahead. About half of respondents predict that more than 30% of Boomers will fall into this category.
Perala also observed that some boomers may be motivated to work longer due to insufficient savings, but believes many others find work personally fulfilling. “As life spans increase, retirement at age 65 may increasingly be seen by employers and employees alike as a relic from the prior century,” he added.
BMO Retirement Services is a part of BMO Global Asset Management and is an award-winning provider of retirement, trust and custody services.
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