Retirement is a significant milestone in life, and for many people, it can be an overwhelming experience. After years of working full-time, people's identity becomes closely tied to their careers. They are often unsure of what to do next, which can cause them to put off retirement despite having the financial means to retire.
That's why companies are beginning to expand their talent strategies to include life planning support for employees who are approaching retirement.
In addition to the traditional retirement benefits such as 401Ks, financial planning workshops, and access to financial advisors, companies are starting to provide programs and services designed to help employees think through the non-financial aspects of retirement, such as building a personal vision for life after work.
By providing this kind of support, employers can help their workers transition more easily into retirement by providing them with the resources they need to make informed decisions about their next steps. Additionally, offering these types of services can help organizations retain retired employees who remain engaged with the organization and may even be willing to mentor younger workers.
It's essential for employers to understand that retirement is a process rather than a single event, and providing support at every stage of this transition helps ensure a smooth transition for both the company and the individual. This will create a better experience for employees and can result in greater employee satisfaction and loyalty.
For employers, it will also lead to increased efficiency and lower costs associated with hiring and training new staff. Supporting employees transitioning into retirement is becoming an increasingly important part of any successful talent management strategy. By providing life planning services to workers nearing retirement age, companies can help ensure a smoother transition for their employees and create an environment of engagement and loyalty.
By investing in the retirement journey of their workers, companies create a win-win situation for both themselves and their employees. Offering life planning support can lead to greater employee satisfaction and increased efficiency and cost savings. In doing so, employers will be able to show their commitment to the well-being of their workers and create an environment in which retirees can continue to find purpose and connection in their lives.
As the volume of people approaching retirement increases and the varied needs of five generations in the workforce becomes more prevalent, it is becoming essential for companies to have a complete and robust talent strategy that embraces all employees at every stage of their careers.
This strategy should include retirement life planning and transition support. Organizations that support employees approaching retirement send a powerful message that they care about the well-being of their staff and value their contributions, regardless of age.
In Summary, here are some reasons why HR should prioritize retirement life planning support:
According to a study by The Conference Board, only 50% of workers are ready for retirement. Every day from now to 2030, 10,000 people will turn 65, and seventy million baby boomers (representing 21% of the American population) are of retirement age. This demographic shift highlights the need for HR to focus on supporting employees through this significant life transition.
Employee Engagement and Inclusion:
Aligning with a company's diversity, equity, and inclusion strategy may involve supporting employees at various ages and stages of their careers, including those approaching retirement. Companies can create a more inclusive workplace culture by demonstrating a commitment to inclusion and equitable treatment of all employees.
Retirement planning support conveys to the entire organization that employees of all ages and stages matter. It shows that the company cares about the well-being of its employees, creating a culture of empathy and understanding. Ultimately it creates an environment of engagement and loyalty among all employees.
Supporting tenured employees as they plan the next stage of their lives provides an opportunity for knowledge transfer. Retirees can share their experience and expertise with younger employees, which can be invaluable for the organization's future success. This helps ensure a smoother transition for the organization and the individual worker, resulting in increased efficiency and cost savings.
Companies that provide retirement and life planning support create future brand ambassadors. Retirees who feel supported and valued by their employer are more likely to speak positively about the company, helping to attract new talent in the future.
Alternative to Out-Placement:
Retirement planning support offers an alternative to out-placement for those who need a different type of support. Most companies have one tool in their toolkit to support employees leaving the workplace. Offering retirement life planning support can provide an alternative that is more aligned with the unique needs of those entering retirement. This could be a more affordable option for many companies and a more appropriate one for employees not seeking a replacement for their full-time position.
In conclusion, companies can benefit from expanding their talent strategies to include supporting employees as they prepare for retirement. Expanding their benefits beyond traditional financial planning to include life planning their life transitions is essential for HR. By providing retirement planning and life transitioning support, companies can create a more inclusive and empathetic workplace culture while also benefiting from knowledge transfer and creating brand ambassadors.