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Currently, half of Swiss employees retire early, and only 23% work beyond retirement age. Demographic trends show fewer young people entering the labor market, and the groups that could replace the older workers are limited in size. By 2030, this could result in a labor market deficit of up to half a million workers. Migration could theoretically address this shortfall, but political reasons make it unfeasible in the near future. Automation is another potential solution, but its impact is uncertain and may not cover all necessary jobs. There is, however, a pool of 230,000 potential laborers within the Swiss economy, including the unemployed, under-employed, and the over-50s. These individuals have valuable skills and experience and are eager to work. Thirty percent of those forced into early retirement would prefer to continue working. Additionally, 580,000 people aged 50-64 in the labor force are willing to work beyond the state pension age. Despite this, a significant gap remains due to the “age guillotine” mindset, where both employees and employers assume retirement is a strict cutoff, hindering further training and career development for older workers. This mindset, along with financial disincentives, discourages older individuals from continuing to work. Many potential employees would accept lower pay but are deterred by continued contributions to the pension insurance scheme that offers them no additional benefit. Employers also face increased pension contributions for older workers, making it unattractive to retain them. A cultural shift within management is necessary. Employers must support older workers by offering opportunities, building cross-generational teams, and adapting working models and job descriptions. Early retirement is often seen as a sign of prosperity, but to encourage continued employment without financial motives, the intrinsic value of work needs to be emphasized. The state also needs to create a more attractive environment by making the retirement age flexible and removing financial disincentives for resuming work post-retirement. While significant changes in retirement age are unlikely soon, discussing alternative models is crucial. Younger workers' involvement in these discussions is vital, as their support could drive reforms. New forms of work must also be developed by the private sector. Flexible retirement options, like a retirement “corridor” between ages 60 and 70, could help overcome the “age guillotine” mindset, encouraging flexibility and continued employment. Some pioneering companies are already offering innovative employment models, but many still underestimate the labor market dynamics. Recognizing and addressing the impending labor shortage before it worsens is crucial. More pioneers with constructive solutions are needed to navigate this challenge effectively. #SwissLaborMarket #RetirementAge #LaborShortage #WorkforceAging #EarlyRetirement #OlderWorkers #FlexibleRetirement #AlphaGlobalWealth

In our rapidly changing economy, marked by stock market volatility and elevated inflation, the allure of a stable retirement plan is stronger than ever. A recent New York Times article sheds light on this evolving trend, highlighting a renewed interest in pension plans. 📈 The Shift in Retirement Preferences: The United Automobile Workers union recently spotlighted pensions in their negotiations, a move not commonly seen in the past decade. This highlights a broader shift in the labor force's priorities towards more secure retirement benefits. 🔍 Expert Analysis: Craig Copeland from the Employee Benefit Research Institute notes the rarity of such demands, suggesting a significant shift in retirement benefits expectations. 📊 Retirement Plan Landscape: Currently, only 10% of private sector workers in the U.S. are enrolled in defined-benefit pension plans, while about half contribute to 401(k)-type plans. Experts like Josh Cohen of PGIM DC Solutions point out the challenges 401(k) plans face in today’s economy, such as market volatility and inflation. 👥 Job Market and Employee Preferences: The competitive job market has led to an increased focus on employers offering comprehensive benefits. Indeed reports a 12% increase in pension-related job searches over the past three years. Similarly, a 2020 report from the National Institute on Retirement Security found that pensions are a key factor for millennials choosing to stay in their jobs. 💼 The Advantage for Employers: Employers offering pensions are seeing benefits too. Glassdoor found that companies with pension plans have higher employee satisfaction ratings, leading to better recruitment and retention. 📝 A Personal Touch: Jessica Steinbach's choice to take a job with a pension plan straight out of college exemplifies the growing appeal of such benefits among younger workers. 🔄 Emerging Trends: IBM's recent pivot to a defined-benefit instrument from traditional 401(k) matching contributions could signal a broader trend in retirement planning. 🚀 The Future of HR: These developments suggest a potential shift towards hybrid retirement packages, combining the stability of defined-benefit plans with the flexibility of defined-contribution plans. As HR professionals, it’s crucial to stay ahead of these trends. How might these changes in retirement preferences impact your HR strategies and employee benefits planning? Let’s discuss below. Your insights are invaluable! #HRtrends #EmployeeBenefits #RetirementPlanning #Pensions #WorkforceDevelopment https://lnkd.in/gRiRwUNM

🔐 Securing Retirement: Employers, it's time to take note! 🔐 I came across this insightful article on PlanAdviser highlighting the importance of employers seeking advice on the optional provisions of Secure 2.0. The proposed enhancements aim to fortify retirement plans, ensuring a more secure future for employees. Key Takeaways: 1️⃣ Empowering Employees: Secure 2.0 provisions offer opportunities to empower your workforce, fostering financial wellness and retirement readiness. 2️⃣ Navigating Complexity: As the retirement landscape evolves, employers need tailored advice to navigate the complexities of Secure 2.0 and implement the provisions effectively. 3️⃣ Strategic Planning: Proactive employers can turn these changes into strategic advantages by staying informed and making informed decisions for the benefit of both the company and its employees. It's evident that the retirement planning landscape is shifting, and staying ahead is key. Let's open the conversation: How are you addressing these changes in your organization? Share your insights below! #RetirementPlanning #Secure2.0 #FinancialWellness #EmployeeBenefits #StrategicHR #401k #erisa #hrbenefits #cpa https://lnkd.in/eWjM8Fe9

Interesting perspective regarding the change to retirement plans since COVID-19 from Fred Barstein, Founder & CEO of TPSU - The Plan Sponsor University and contributor to WealthManagement.com. He writes, it has been just over three years since COVID-19 changed the world forever and just 12 months since things seemed to have returned to “normal.” But the pandemic has changed the world forever, particularly the workforce and especially benefits like 401(k) plans. Before the pandemic, the biggest obstacles to improving retirement plans at work that frontline HR/benefits and financial professionals faced was the lack of engagement by senior managers. The prevailing sentiment was to maintain the defined contribution while limiting liability, costs and work, not improve outcomes. After the pandemic, when job growth started recovering after having lost 20 million positions, there was a noticeable shift in resources and attitudes by organizations about their retirement plans. The perspective switched from a tactical benefit like health care, where costs are paramount, to a strategic benefit to help with recruiting and retention. I would be interested to know what changes as a plan sponsor have you made to your company's retirement plan. https://lnkd.in/gyRNAg_r #plansponsors #hr #humanresources #employeeengagement #employeewellbeing

Most businesses today need to offer a solid benefits package. Failing to do so could mean falling behind in the competition to hire and retain talent in today’s tight job market. When it comes to retirement benefits, however, smaller companies may struggle with the financial and administrative burdens of sponsoring their own plans. The good news is, thanks to the Setting Every Community Up for Retirement Enhancement Act of 2019, a relatively new solution is available: pooled employer plans (PEPs). Continue reading: https://lnkd.in/gaNm-Cz9 #FMD #RetirementBenefits #Benefits

Survey finds 74% of workers say it’s important for employers to offer retirement savings options Roughly three-quarters (75 per cent) of Canadian employees say it’s important for their employer to offer a retirement savings option, according to the latest mental-health index by Telus Health. The survey, which polled 3,000 respondents, found 70 per cent reported not knowing or being unsure of how much savings they’ll need to maintain their desired standard of living in retirement. Forty-four per cent said they’re concerned about being able to purchase or rent a home and 30 per cent said they want benefits packages with financial planning solutions. For the second consecutive month, the mental-health score of workers in Canada declined in September 2023 to 64.4. Read: Survey finds a third of Canadian workers finding cost a barrier to accessing mental-health support The lowest mental-health (54.9) and financial well-being (50.3) scores were among employees who didn’t know how much retirement savings they’ll need to maintain their desired standard of living. Workers who knew how much they need to save for retirement had the most positive mental-health and financial well-being scores (72.4 and 74.7 respectively). Nearly a fifth (18 per cent) of respondents said unlimited mental-health coverage is most important in a benefits plan. Employees under age 40 were 2.5-times more likely than workers over age 50 to cite benefits that provide coverage for parents as the most important of the plan. “The current economic landscape has workers concerned about their financial futures and looking for advice on how to navigate a path forward,” said Juggy Sihota, chief growth officer at Telus Health. “Employers that grasp the undeniable connection between mental and financial well-being have a unique opportunity to offer all-encompassing and impactful support. By providing access to comprehensive benefits plans, tools and resources, employers empower their employees to forge a financially secure tomorrow for themselves and their loved ones.

🚨90% of polled jobseekers say that a retirement plan is a MUST HAVE benefit, 75% said they would actually turn down an offer if there was no 401k, and, 71% of employed Americans said they are more likely to stay with an employer that is offering a sponsored retirement plan🚨 That said, how do you differentiate when all your competitors also offer a 401k? How can you tune up your plan to be a true value add, above and beyond that of your competitors? To take it a step further, let's say you supercharge your retirement plan, but still feel you need to do more... when is it the right time 🕰 to start considering additional benefits beyond the retirement plan, such as a Deferred Comp Plan, HSA, or Student Debt Program? According to experts at Charles Schwab & Voya, the labor market is going to continue to tighten 📉 through 2026... so how can you turn this to your advantage, rather than become a victim of inevitable economic swings? It starts by having a plan! 💡Let's explore how a poor market will expose your business and start shoring up your defenses by securing your talent and making your organization one that people fight to be a part of 💪 Let me know in the comments ⬇ if you're seeing worrying trends in the economy and what steps you're taking to prepare! #leadership #community #entrepreneurship #smallbusiness #benefits #401k #money

As if the ongoing workplace battle for talent acquisition and retention weren't reason enough, the upcoming SECURE Act 2.0's limitations on pre-tax catch-up contributions make your employer's non-qualified retirement plan mission critical. Per WTW, "[e]mployer interest in nonqualified retirement plans is at an all-time high." 📈 Here at Cerity Partners we have consulted with clients implementing new nonqualified plans, and redesigning existing plans, more in the last year than any time in recent memory. If this is a new idea to you, or if its been years since your NQ plan has been evaluated, it may be time for a fresh look.🧐 #hr #retirementsavings #executivebenefits Leslie Ballantine, QKA®, AIF®, NQPA™ Angie Duncan, CPA Katie Pfeifer, CFP®

This week on our desk 👇 The question is answered by our consultant Catherine Monahan. The Code of Practice on Longer Working (S.I. 600, 2017) sets out the best principles and practices to follow during the engagement between employers and employees in the run-up to retirement including responding to requests to work beyond the retirement age. The Employer must be familiar with the provisions of the Code and follow the guidance set out therein. Employers should therefore have a Retirement Policy, which is communicated to all employees, complying with the Code and outlining how the employer manages employees retirement age, the procedures the employer will follow towards employees planning their retirement including the process employees must follow to request to work beyond the Company retirement age. The Code states that an employer should notify an employee in writing of the intention to retire the employee on the contractual retirement date within 6-12 months of that date and this should be followed up with a face-to-face meeting. Should an employee wish to request to work beyond the contractual retirement date they must do so in writing no less than 3 months from the intended retirement date and this request should be followed up with a meeting between the employer and employee. The employee may be accompanied to a meeting by a work colleague or union representative to discuss the request. Any requests to work beyond the company retirement age must be considered carefully and any decision must be made on fair and objective grounds. The employer’s decision should be communicated to the employee as early as practical following the meeting. If the decision is to refuse the request, the grounds for the decision should be set out and communicated in a meeting with the employee to help the employee understand the reasons for refusing the request and reinforce their case has been given serious consideration. The employee should be afforded the opportunity to appeal the decision through the normal grievance procedure and be offered to be accompanied to the meeting by a work colleague or union representative. You may offer a fixed-term contract to a person over the compulsory retirement age provided that it is objectively justified by a legitimate aim and the means of achieving that aim are appropriate and necessary. Should this be the decision you make, state the reason the contract is being offered, the period it is being offered for, the legal grounds underpinning the new contract, that the Unfair Dismissals Acts do not apply to the termination of the employee’s employment on the expiry of the contract term and that retirement will take effect from the expiry of the term of the contract. For more info on this and other employee-related topics reach out to us at https://lnkd.in/dGDDsFmv #Retirement #RetirementAge #HRConsultancy #HRBestPractice #TeamAction