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Aging population complicates U.S. retirementPosted by Randy on: 2005-09-27 07:01:02 in category:
Retirement Headlines [ Print | Permalink / 1 Comment(s) ] WORKFORCE U.S. public policy struggles to deal with an active, aging population. BY DIANE STAFFORD Knight Ridder News Service COLLEGE PARK, Md. - How long do you want to work? How long will you be able to work? The two questions are different, as are most workers' answers. Cumulatively, the answers will help decide whether the majority of American workers are able to maintain a decent standard of living in their ``retirement years.'' KNIGHT CENTER STUDY Recently, at the Knight Center for Specialized Journalism, 28 business writers from around the country studied the broad topic of workforce globalization. Interestingly, the big issue often is being eclipsed by a narrower focus on the aging workforce. It is an elephant in the room. Offshoring of jobs, competition from low-wage countries and trade barriers are all on the agenda. But discussions repeatedly turn to U.S. public policy -- and workplace decisions -- that affect older workers and retirees. The worrisome drift is that our nation isn't moving quickly enough or decisively enough to deal with the fact that more Americans are living longer, living healthier and wanting or needing to work longer. Policies and practices since World War II have conditioned U.S. workers to accept as givens their access to 30-year-and-out programs, buyout packages at age 55, and Social Security benefits at age 62 or 65. Speakers had a common message to those entitlement sentiments: Retirement ''as is'' is not sustainable. That's why ''retirement years'' is in quotation marks. More workers will have to work longer, but how long is conjecture. In 2008, the first of the baby boomers will turn 62, the earliest eligibility age for Social Security retiree benefits. If they, like recent 62-year-old workers, opt for retirement, half of them will begin collecting benefits. MAJORITY TO WORK AARP surveys suggest as many as eight out of 10 boomer retirees expect to continue working, at least part-time. Currently one out of four 65- to 69-year-olds remains employed. That disparity seems to indicate that unless financial need demands it or boomers' fervor for work wanes in the meantime, there will be a dramatic change in the composition of the older workforce. SLOW POLICY CHANGES Of course boomers, like those before them, might become ill or disabled and unable to work. Others, also like those before them, might retire early because they're financially comfortable and have no desire to work. But the repeated subscripts to the older workforce predictions -- fuzzy as they may be -- are that public policy and private employer policies aren't changing fast enough. Two principal suggestions: Psychologically and politically unpalatable as it may be, America must consider means tests for Social Security benefits, and it should have moved already to gradually increase the benefits eligibility age. Employers must quickly change attitudes and policies to deinstitutionalize retirement. That means improving the hiring, training, retraining and retention of older workers and introducing phased-in retirement, prorated benefits, and part-time options. To be sure, you'd be hard pressed to find a survey where workers said, ''Please raise the retirement age.'' But demographics say we must consider it. Homepage Other community sites http://www.business-business.biz Please support are sponsors. To design you custom retirement plan. http://www.retirement-plan.us For planing a IRA rollovers. http://www.ira-rollover.us Professional asset allocation and the wonders it can do. http://www.asset-allocation.us Professional money management: National ranked performance. http://www.roth-ira.us Managers selected to fit your needs. http://www.money-managers.us |
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Comments randy
- Posted on: 2005-09-29 18:12:08
should we hire local or global what is best ethicly and why? |
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