With the senior population outweighing the active workforce in many countries worldwide, retirement is a concerning issue for many, and Canada is no stranger to this hardship. Mercer's latest Global Talent Trends report states that "just 16% of employees – down from 25% just three years ago – intend to stop working completely at retirement age. A massive 84% anticipate continuing to work, in some cases reducing hours, phasing into retirement or simply playing it by ear".
"Financial uncertainty is also putting retirement at risk, driving two of the top five reasons people plan to continue working past retirement age," showed the report. While 79% of workers feel financially secure today, 51% are concerned about the future.
According to Mercer, "39% of companies are enabling employees to adapt retirement benefits to their personal circumstances, and 38% are proactively offering older workers different employment options, including phased retirement. Yet these efforts may not be enough to ensure retirement adequacy, especially in markets with fewer government protections."
Companies who find themselves having senior employees struggling with the difficulty of retiring can opt for these options for a better retirement transition:
- Proactively offering older workers different employment options (e.g., project-based roles, gig worker status, etc.)
- Making options available for part-time or flexible working after retirement
- Offering phased retirement options
- Building own retiree freelancer talent pool
- Actively recruiting older talent
While the same solution may not work for every employee and every company, it is essential that the HR departments acknowledge this situation so they can design and implement a Retirement Plan that suits their employees.
Are senior employees in your company putting off retirement? Share your company's Retirement Policy and Benefits with fellow colleagues.
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