Boomer Sooner – How to Prep Your Baby Boomer Workforce for Retirement
Posted on Thursday, May 31, 2018 by Bridget Mortland
I’ll be honest, there are days I dream of turning in that badge and riding off into the sunset of retirement. And then I think, “Dream on Bridget, you’re a Millennial. You still have another 20+ years!”
While punching that golden ticket may be far down the road for me, for thousands of Baby Boomers the reality of retirement is finally here. They’ve put in the hours, worked the late nights, and now they get to enjoy the bounty of their hard work. Or do they?
Rising healthcare costs.According to Fidelity, a couple that retired in 2015, both aged 65, will spend an estimated $245,000 on healthcare throughout retirement. (That’s up from $190,000 in 2005.) We can attribute that major uptick to both longer life expectancy and rising healthcare costs.
Not enough commas in that savings account. Sadly, many just haven’t saved enough. According to the 2017 Retirement Confidence Survey, 55% of workers and 38% of retirees have less than $50,000 saved for retirement. That’s less than many people make in a year!
Not-so-secure Social Security. While many retirees count on Social Security to make up the difference in their income, nothing is guaranteed. Without reform, benefits will need to be cut by 23% in aggregate by 2033, according to the Social Security Administration.
While those stats seem daunting, it’s not all bad. More and more employers are offering retirement benefits to support those high healthcare costs that come in the later years. Additionally, many Baby Boomers are choosing to come back to work in a part-time or consulting capacity to earn a little extra cash (and ease the knowledge transition.)
As for Businessolver, we are focusing on how we can better prepare retirees for their transition out of the workforce. Knowing the statistics above, we want to ensure workers are set up for success so they can truly enjoy their golden years.
Here’s how Businessolver can help:
Our retiree services make it easy for employees to elect their retirement benefits before they retire, so they can have peace-of-mind knowing they are protected when they walk out the door. Additionally, our direct bill services make managing retirement benefits simple and stress-free.
The MyChoice℠ Market is our offboarding solution that allows former employees access to benefits they can take with them when they leave. These include benefits like legal and identity protections that are of great importance as you age.
We recently teamed up with Transamerica to bring 401k enrollment into our administration platform, Benefitsolver. This means employees can ensure they are maximizing their contributions during their company’s open enrollment, better preparing them for the road ahead.
Interested in learning more about how you can better prepare your workforce for retirement? Check out our solutions here.