Boomers source of talent and growth (Guest commentary)

Helping boomers transition to retirement can pay big dividends for employers

Baby boomers have always prided themselves on bringing their own special approach to everything they do and retirement will be no different for this remarkable generation.

Unlike earlier generations who seemed content to accept a gold watch and a retirement party before putting their feet up in satisfaction, boomers will not be content to simply ease into a predictable life of idle leisure. This generation will be looking for new ways to continue living active, meaningful, interesting and fulfilling lives — either by remaining on the job in new or reduced capacities or by reinventing themselves to spend their golden years in innovative ways.

With this relatively healthy, wealthy and ambitious cohort poised at the threshold of retirement, the 2008 TD Waterhouse report Canadians and Retirement — based on an online survey of 801 retired Canadians conducted in March — is timely for the insights it can provide both to boomers and their employers.

One in four respondents said they have found it harder than expected to adjust to a life that is no longer defined by work. About 60 per cent said they had not worked with a professional to plan their retirement and only 15 per cent said they are living out their retirement dream today. The majority agreed that anyone approaching retirement should take time to prepare for and understand what they want from retirement.

The financial picture no doubt plays a role in these numbers — how effectively people have financed their retirement is going to have an impact on their options in the future. But it also seems clear that, beyond money and savings, having a plan or vision in place to manage that other precious resource — time — has a major impact on what retirement looks like.

Boomers are both enthusiastic and a bit anxious about what the retirement years will hold and many expect to remain in some type of work setting. The 2007 report by the McKinsey Global Institute, Serving Aging Baby Boomers, based on a poll of 5,100 boomers, notes that 80 per cent of respondents said they are excited about the work and lifestyle changes possible in retirement. And 84 per cent said they expect to work after they “formally” retire and 63 per cent said they couldn’t see themselves ever retiring completely.

Many boomers will be looking to remain employed for financial reasons, but a good chunk also view work as a source of self-fulfilment and mental stimulation. And as the McKinsey report suggests — and employers should take note of this — innovative companies that can satisfy the various needs of boomer retirees “will find new sources of talent and profitable growth.”

Companies will certainly want these skilled and able workers, particularly as talent shortages grow. Boomers will be particularly desirable because this generation is not just the best-educated, most-skilled aging workforce in history but it also accounts for a disproportionate share of “knowledge workers.” With skilled labour shortages already hitting crisis proportions for some industries in Canada and beyond, boomers represent a valuable talent pool for companies seeking solutions as jobs go unfilled.

With the growing desire of boomers to stay active and the growing need of employers to retain talent, programs designed to help employees plan for their post-retirement years are gaining interest. With more boomers asking “What’s next?” and more employers pleading “When can you start work?” it only makes sense for employers to begin helping older staff explore what will be mutually beneficial arrangements in the future.

By reducing anxiety about the future for boomers seeking answers, employers are creating happier and more focused employees. Beyond that, they are helping their people define what the later years will look like and explore the notion of staying on the job in some capacity.

For boomers, it all comes down to having a roadmap that provides direction for how retirement can be well spent. Having a clear and optimistic view about how it can bring new discoveries and new meaning to life is crucial to boomers.

Retirement should be the next step in a fulfilling and meaningful life. With some careful thought, some insightful guidance and plenty of the energy that boomers are famous for, this generation is about to bring a whole new meaning to the concept of retirement.

Suzanne Armstrong is the president of Life’s Next Steps, a Jersey City, N.J.-based company that helps soon-to-be retirees plan for their future. She can be reached at [email protected] or visit www.lifesnextsteps.com for more information.

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