The Facts About Aging Workers

How in touch are you with the real facts about workers age 55 and up? Review these facts, and see if you don't find at least one eye-opener.

Planned and Actual Retirement Ages

The median age of planned retirement has crept up to age 65 in 2004-2009. In 1991, the planned age was 62. [Employee Benefits Research Institute, 2009]
The average age of actual first retirement now stands at 62. [U.S. Bureau of Labor Statistics citing Current Population Survey data]
Many workers (47%) leave the workforce earlier than planned. Of those leaving early, 42% left for health and disability reasons, 34% left from downsizing/business closings, and 18% left to care for a spouse or other family member. [Employee Benefits Research Institute, 2009]

The percentage of workers age 55 and older has been on the rise since 1993, long before the current recession. Civilian workers age 55 and older comprised 38% of the workforce in 2006, the highest level ever since 1975. [Employee Benefits Research Institute, 2007] How are your employee benefits and employment strategies changing to adapt to these ongoing changes?
“There is a disconnect because employers are investing…in the training and development of young inexperienced workers rather than workers 55 and older whose job tenure is three times longer.” [Center for Productive Longevity, 2007]
“Now we’re seeing a lot of questioning of whether 20 years of non-productive leisure is affordable or even enjoyable. Somewhere between 60 and 65 percent of retirees don’t like it at all.” [Ken Dychtwald, psychologist and author of 16 books on aging]

Between 1992 to 2007, a major shift in the type of retirement plans occurred. Defined benefit plans made up 40.0% of the plans in 1992, but had dropped to only 17.4% by 2007 with employers’ increasing movement toward defined contribution plans. [Employee Benefits Research Institute, 2009]
People who have attempted a retirement savings needs calculation are more likely than their counterparts to have saved for retirement. [Employee Benefits Research Institute, 2009] What are you doing to help younger workers start planning for retirement, especially since contribution plans place more onus on the employee?

Of self-employed workers age 55 and up, 37% are working ONLY because they want to work – not because they need the money. [Pew Research] How many retirement-eligible employees do you have who are working for reasons other than financial? How many would-be entrepreneurs are among your ranks?
The median annual personal income of self-employed workers equals or slightly exceeds the median for wage and salaried workers. [Pew Research; Current Population Survey data]