CFOs hate to hear about poor financial literacy among workers, especially the folks they count as friends. The latest economic news on that front isn’t good (though it may be great news for some employers. More on that later.)
Just 58% of Baby Boomers have saved for retirement, according to Zerohedge. The most recent U.S. Census finds Boomers (born from 1946 to 1964) are ill-prepared for retirement due to not saving income or spending it.
Forty-two percent of the oldest segment of the workforce either never set up a 401(k), 503(b) or IRA for themselves or they’ve emptied whatever they had. And a significant slice of that group is still working full- or part-time, many at their chosen professions.
The numbers aren’t any better for Generation X and Millennials. Just 56% of Xers (1965-1980) have at least one retirement account and half of Millennials (1981-1996) do. These groups face more pressure to start socking away money now as the Social Security safety net will snap in the next 20 years absent critical reforms being made by Congress.
CFOs and benefits personnel should expect questions and concerns from older, savings-strapped workers. The sad reality is you’re anywhere near 60 and lack savings to tap, it’s far too late to catch up.
Baby Boomers who lack funds for retirement will need to keep working and delay collecting Social Security until 70 1/2 if doable to maximize income in their golden years.
‘Old pros’ may fit the bill for some employers
Employers struggling to find talent may want to consider older job candidates – and that means people in their 50s. Many HR professionals and hiring managers prefer to hire younger (and non-white) candidates to meet company quotas or their own personal goals. The often unspoken perception is that younger workers are “hungrier.”
CEOs and CFOs may want to reexamine their hiring strategies to ensure they’re not losing out on older professionals with skills and a strong desire to keep working. Some folks may be good fits for seasonal employment or part-time positions.
Some of the Boomers who quit or retired during the COVID-19 shutdowns will need to return to work. For some employers, they’ll be worth taking a look at.