For many years, the retirement age was 65. Long-time employees could kick up their feet and sit back and relax after decades of giving their all to the business world. However, with a struggling economy, workers have been sticking to the daily grind longer.
The New York Times discussed how the 65-and-over population has been looking at retirement differently over the past few years, with more individuals staying in the workforce longer. Citing a recent Census Bureau report, the article said that in 2010, 16.1 percent of the population 65 years and older was in the labor force, while two decades earlier, that number was at 12.1 percent.
“People may be working longer because they are in better health in their late 60s and expect to live longer than their counterparts a couple of decades earlier,” the article said. “But they may also have greater financial responsibilities today than in the past.”
According to a study by the Employee Benefit Research Institute, 56 percent of workers expect to receive benefits from a defined plan in retirement but only 33 percent report that they and/or their spouse currently have such a plan with a current or previous employer. Furthermore, 13 percent admitted that they had “inadequate finances or can’t afford to retire.”
Regardless of an employee’s age, all team members should feel confident in their ability to retire. An HR software company can help an organization find comprehensive HR software solutions, which can ensure that a business is able to establish clear retirement plan options.
With HRIS, companies can not only streamline their payroll systems, but also help employees stay up-to-date on what their best plans for their futures can be.