Rethink that retirement party. More and more seasoned workers are defying expectations and staying in the workforce for a surprising reason – they simply can’t afford to retire.
That was obtained from a A new study by Korn Ferry It found that the number of Fidelity customers who have the investment power to cover all their expenses in retirement has dropped from 83 percent last year to 78 percent this year.
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The biggest problem
Korn’s boat study isn’t the only data showing a problem. Payroll service company Paychex found Currently, one in six retirees (17 percent) are considering returning to work, with more than half saying they need more money.
The rise of older workers staying on the job is raising concerns in the executive suite as corporate planners expect valuable older workers to retire, opening up top-level jobs for younger workers looking to advance their careers.
“If the performance of older workers is good, you’re in a bit of a box,” says Ron Porter, head of Korn Ferry’s global workforce center of expertise.
It’s a big change from 2020, when corporate types were keen to keep older workers on the job in the early stages of the Covid-19 pandemic. The ongoing labor shortage has put many large companies out of business.give back” Programs aimed at hiring and training people, including parents and retirees, who are out of the labor force for any length of time. In the year By 2023, however, many organizations are looking to cut costs or restructure, and executives will want to see high-paid 50- and 60-somethings move in. Retirement.
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Impact on young workers
In fact, many corporations have been waiting for older members of their workforce to transition into eligibility as the old man. Social security And he can start spending money. Tax-deferred retirement accounts Without Punishment. The expectation was that young workers with diverse skills would help them reshape their businesses.
This demand can be bad news for middle-aged and young workers. Because age discrimination by employers is illegal, targeting older workers is dangerous. That may give older workers some new leverage with their employers, who may switch to offering buyouts. Another option is to start the pension-track positions. These jobs are designed to supervise and train younger workers, transfer knowledge and skills, and transition to shorter work weeks to allow older workers to transition into retirement.
Bottom line
Fears that older workers will not be able to retire have created concerns for corporate executives who want to keep their most valuable employees and open up senior positions for younger workers as they stay on the job longer.
Retirement planning tips
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