Study after study proclaims baby boomers make for smarter workers, nicer colleagues, kinder bosses, and, heck, just all-around better people than the rest of us. Maybe it’s all true; far be it for me to knock the collective talents of 78 million people. But it occurs to me: could it be that all this affirmation is lulling boomers into the belief that they can keep their jobs forever?
I just received research conducted by Personnel Decisions International, which calls itself “a global HR consultancy firm specializing in leadership development and talent management.” After noting that 22.5 million boomers will retire in the next 10 years, according to the Census, PDI set out to discover: “what knowledge, specifically, do baby boomers have that Generation X-ers do not?”
Surveying the feedback of 23,953 mid-level managers, PDI found that boomers are “more likely to receive higher performance marks” than Gen X-ers in areas like “knowing the business,” “using technical/functional expertise,” “coaching and developing,” and “managing execution.” Gen X-ers tend to receive higher marks on “developing oneself,” “showing work commitment,” “analyzing issues” and “demonstrating adaptability.”
The coming exodus of these valuable workers is causing all kinds of hand-wringing among some economists, HR managers and older-worker advocates. Many are coming forth with solutions on how to stanch the bleeding. “BOOMERS SHOULD BE ENCOURAGED TO KEEP WORKING,” shouts a November 2006 report:
One way to soften the blow of boomers’ retirement, according to a new report from the National Center for Policy Analysis (NCPA), is for government to encourage boomers to stay in the workforce longer, or at least not encourage them to leave.
That report from the NCPA, which describes itself as “nonprofit, nonpartisan research institute with offices in Dallas and Washington, D.C., that advocates private solutions to public policy problems,” lists examples of government policies that encourage seniors not to work:
* Social Security withholds a portion of some people’s benefits if they earn above a certain amount before they reach the normal retirement age.
* Those who continue working past the early retirement age continue to pay Social Security taxes but do not get those taxes back as additional benefits.
* The reward (in terms of greater monthly benefits) for people who delay their retirement is too low for many retirees.
* The rewards for early retirement increase whenever life expectancy increases.
The thing is, all the worrywarts who believe government incentives and other enticements will lure boomers into retirement are most likely wasting their energy. It appears a great many boomers expect to keep working well beyond retirement age.
Not all of them want to, of course; given the choice between a cubicle and a hammock–well, who would? The main motivation is, as always, money. Many–no, most–boomers simply don’t have nearly enough saved to fund their golden years. And so they expect to hang on to their salaried jobs far longer than workers have in the past.
But here’s the scary part: they may not have that option. Recent research from consultants McKinsey & Co. found that
U.S. workers are far more likely to be forced into early retirement than many of them expect and that many significantly underestimate the costs they’ll face in retirement.
Even scarier:
Almost half of all preretirees expect to work past age 65, yet only 13% of current retirees have done so. Health problems and the loss of jobs are the factors most likely to force people out of work prematurely.
Sobering. Thoughts?