Our Aging Workforce
It’s no secret that the generation called baby boomers is approaching retirement. Some have already retired. A recent report from the Massachusetts Institute for a New Commonwealth (MassINC) called “The Graying of Massachusetts: Aging, the New Rules of Retirement, and the Changing Workforce” says that in less than five years, 1.87 million baby boomers will begin retiring. By 2025, 18 percent of Massachusetts’ population will be elderly. This is the same percentage of elderly that the state of Florida currently has.
When are people retiring? MassINC’s report shows that the average age for men to retire in Massachuestts is 64, while the average age for woman is 62. However, the increase in the age for Social Security eligibility and low savings rates are delaying retirement for some people. Many people lack a pension or other retirement savings.
Few baby boomers have the financial assets to bridge the gap between Social Security and a pension plan (if they have one) to maintain their current standard of living. MassINC recommends six ideas to help with this problem.
1. Increase access to retirement savings programs at work.
2. Employers should consider ways to help increase employee participation
in retirement savings and help them manage their savings.
3. The state should take a more active role in the financial education
of its citizens.
4. Individuals must take more responsibility for their retirement finances
and will need to save more on their own.
5. The workforce development system should improve opportunities for job
training of older workers.
6. Policymakers should begin an ongoing state conversation about the implications
of the aging Commonwealth.
As citizens, we can’t ignore the huge segment of our workforce that will soon be retiring. Government will be pressed to provide services for this large group. More elders will need support than ever before. And, the new workforce may face dramatic employee shortages. It’s time to start thinking about this major transformation!
Source: At Home with Mass Home Care
