People Matters Global’s Post

With longer lifespans, an increase in the number of people over the age of 65, and a declining approach to retirement as an “off switch” for working life, it isn’t surprising that the economy continues to make room for people who want to work beyond that age. Employers may seek out “older” workers who feel that there’s no expiration date on their skills. From The Hartford, an article entitled, “A “Never-Retire” Retirement Plan” @ https://lnkd.in/eiHqtyPe For decades, American workers have treated retirement, the end of the “daily grind” of working for pay, as an important part of the American life cycle. But whether they’ve planned to or not, not everyone retires. Have you ever wondered why some people don’t retire? The answer is linked to transformations in the economy, demography, and society that have occurred since the concept of retirement was first introduced in the United States. The reasons people may continue to work after the “traditional” retirement age of 65 may vary. They include: A financial need to continue working or build up a cushion for later years. The desire to stay active and engaged in the work force. The removal of barriers that might once have prevented working past age 65. The itch to explore new kinds of work. Whatever the reasons, the reality is that more and more people are working after the age of 65 and the idea of a career “off switch” may become unusual. When Social Security was introduced in 1935, life expectancy at age 65 was about 13 more years. That number has increased to about 18 years for men and over 20 years for women. Those numbers are averages, that means that half of people who reach the age of 65 are expected to live beyond those additional two decades. What does that mean for retirement? A working career might last 25, 30, or 35 years; the new reality is that retirement can last as long, or even longer. This observation is particularly relevant to women, who may start working later than men or take time away from paid work to raise children or care for other family members. Women in these categories tend to have fewer years of employment and less time to build up Social Security credits and other retirement savings. This is especially worrisome given that women, on average, live longer than men. Continue reading the article @ https://lnkd.in/eiHqtyPe

After decades of grinding, most people aspire to one day be able to kick up their feet (preferably at a holiday home by the beach) and retire. But after having a brief taste of retirement, a sizable chunk of pensioners are dusting off their suits and returning to work instead. In fact, a survey of more than 6,300 U.K. adults for Standard Life, part of the nation’s largest long-term savings and retirement business, found that 14% of baby boomers and late Gen Xers have already “unretired”—and a further 4% are considering it. While 16% of women over 55 years old are planning a career return, this figure rises to nearly a quarter of men—some 21%. The number of those who have continued to work past 65 in the U.S. has quadrupled since the 1980s, according to the Pew Research Center. Now, almost 20% of Americans 65 and older are employed, nearly double the share of those who were working 35 years ago. In total, there are around 11 million Americans 65 or older who are working today, accounting for 7% of all wages and salaries paid by U.S. employers. In 1987, they made up 2%. Many older Americans are worried they won’t be able to afford the retired life they dreamed of. So instead of puttering around the house, they are working for longer to grow their pension pot or taking up part-time gigs to sustain a better standard of life. Sadly but unsurprisingly the growing number of pensioners rejoining the workforce aren’t doing so because they missed the daily routine of clocking in from 9-to-5, the buzz of the office, or the company of colleagues. According to the research, money (or lack thereof) is the main driving force behind the trend, with inflation adding around $1,250 a year to households’ annual bills. The current climate is causing a double-whammy impact on pensioners’ pockets: For more than a third of respondents, the cost of living is now higher than they’d planned for, meanwhile, 24% said that their retirement income is no longer enough to actually live on. With pensions not quite stretching like they used to, 31% of respondents want to earn more money so that they can make the most of their free time and treat themselves beyond splashing out on basic needs.   Even those who haven’t yet retired have taken a close look at the economy and noted that they won’t be able to enjoy the fruits of their labor for some time: More than one in 10 are now postponing their plans to retire, while 3% are taking on an additional job to boost their income. “The economic landscape of the last few years has put sustained pressure on people’s finances, with all ages and stages of life impacted,” said Dean Butler, managing director for retail direct at Standard Life. “As a result, people are being forced to seek new ways of supplementing their income, be that taking on additional work, delaying retirement plans, and even returning to work having previously retired.”

There's now one less pillar supporting our retirement dreams. The three pillars of retirement income - government benefits, employer pensions, and personal savings - are essential for financial security in our golden years. However, with the erosion of employer pensions, the burden falls heavier on individuals to fortify their own retirement nest eggs. It's time to take control of our financial futures by ramping up personal savings, investing wisely, and seeking expert guidance. Let's ensure that our retirement dreams don't crumble under the weight of this shifting landscape. Together, we can build a solid foundation for a secure and fulfilling retirement.

According to this recent report, there is a significant reduction in pension plans across Canada. This development poses a serious threat to the retirement security of many Canadians. As a financial company dedicated to empowering our clients, we recognize the urgency of this issue. Now more than ever, it's crucial to take proactive steps to secure your financial future. Whether it's through strategic investment planning, exploring alternative retirement savings options, or advocating for policy changes, we're here to help you navigate these uncertain times. Let's work together to safeguard your retirement dreams and ensure a brighter financial future for all. #PensionCrisis #RetirementSecurity #FinancialWellness 💼💰👴

Economic News Segement: “The latchkey generation” for our independent childhoods being raised by sets of working parents, Generation X will be the first to reach retirement under the new paradigm: the widespread move from DB plans to defined contribution (DC) or 401(k) plans in the U.S. This is a barely cited yet fundamental societal change that shifted the responsibility to save for retirement from employers to individual employees.

🌟 Bridging the Retirement Savings Gap for People of Color 🌟 📊 People of color face significant challenges in saving for retirement due to a lack of access to employer-sponsored retirement benefits. This disparity leads to less secure retirements, despite many working longer hours and careers. 🔍 A recent report highlights the gap: ● Black and Latino workers often have significantly less retirement savings compared to white workers. ● Access to retirement benefits is a major factor. White workers are more likely to have jobs that offer these benefits and qualify for them. 📈 Key findings: ● 90%+ Participation: Over 90% of eligible workers, regardless of race, participate in retirement plans if available. ● Access Disparity: White workers are more likely to work in jobs offering retirement benefits, leading to a 40-50% smaller retirement savings gap if equal access was provided. ● Industry Impact: Private sector access varies widely; public sector provides more consistent access. ● Education's Role: Workers with college degrees have higher participation rates, yet many Black and Latino workers do not have degrees, affecting their participation. 🚀 Ensuring equal access to retirement benefits is crucial. Policymakers need to focus on providing portable benefits and immediate eligibility to bridge this gap and promote racial retirement equality. #BBG #RetirementSavings #FinancialEquality #WorkplaceBenefits #DiversityAndInclusion #HR #EmployeeBenefits #RetirementPlanning #RacialEquity #FinancialSecurity #EqualAccess #PolicyChange #InclusiveWorkplaces

Here’s an important read on how the significance gender gap affects women; who live longer and have higher healthcare costs. “A holistic approach that is inclusive and improves financial wellbeing is essential to address the gender savings gap.” Read the article below 👇🏾 #gendergap #aarp #retirementplanning #payequity #caregiving #paygap #retirementsecurity

Some insightful analysis of the latest ABS retirement stats from demographer Simon Kuestenmacher: 👩🦳👨🦳 from a retirement perspective, it looks like we’ve hit ‘peak Boomer’ 💁🏻♂️💁♀️ we’re still a decade away from seeing the first cohort of retirees (Gen-Xs) retire having had mandated super their whole working life 💰⚖️ super is, and is expected to continue to, measurably lift the ratio of self-funded retirees.

I don't think they have much choice. Raising retirement age is the easiest first step. Wrong, talking about how to implement raising the retirement age is the easiest first step. "The unexpected deliberation followed a July announcement by the ruling Communist Party that the retirement age will rise in a “voluntary, flexible manner.” The proposal wasn’t on the meeting agenda announced ahead of the four-day meeting of the legislative body this week." Why? Is it the easiest? Because it is 'flexible', 'voluntary' whatever that is supposed to mean. 1. So I can opt out of the retirement age hike since it is voluntary? 2. Is there a set of national guidelines that spells out the range of actions - and must the state officials abide these strictly or they have discretion? "China’s population has been in decline since 2022, with people aged 65 and above expected to reach 30% of the population by around 2035 from 14.2% in 2021, according to a report by state broadcaster CCTV on Tuesday."

📰 The Retirement Living Council's recently published Better Housing for Better Health Report highlighted the importance of continuing to expand retirement living services to meet the evolving needs of older adults. Check out our latest blog post where we share our insights on "Heading into the retirement living services era". 🌤️ 🔎 Discover why retirement communities are transitioning from focusing on housing to providing essential care, well-being, and support services. 👉 Read the full blog here: https://bit.ly/3UsHhQB #retirementliving #technology #retirementcommunity #villagemanagers #insights