Boomers Need A Boost From Business
Romasco
When non-retired Baby Boomers contemplate their financial futures, their anxieties go well beyond the single issue of jobs.
In an “Anxiety Index” calculated from a new survey conducted by AARP, boomer voters age 50-64 are decidedly pessimistic about their retirement prospects. They doubt they'll be financially secure, worry that prices are rising faster than their incomes, and they're concerned about the rising cost of health care and taxes. Almost three in four believe they'll have to delay retirement, and half of them don't think they'll ever be able to stop working. They believe they will need to rely even more on Social Security and Medicare to meet future needs.
Knowing just how worried these boomers are about their retirement prospects gives the business community a unique insight into these challenges and opportunities.
AARP and others have long contended that older workers are among the most productive, most loyal, and most engaged employees. Capturing and retaining this value holds the promise of long-term financial dividends. Employers who demonstrate their appreciation for experienced workers by addressing workplace issues, such as the need for flexible work schedules to accommodate caregivers, phased-retirement programs, and policies to prevent age discrimination, are rewarded by dedicated and knowledgeable workers who provide a distinct competitive advantage in a challenging marketplace.
Businesses that provide financial services, products and planning advice have an eager audience for resources to help plan a more secure financial future. Tools that help boomers calculate what they can expect to spend and what their resources add up to are especially welcomed by these workers, along with savings and tax advice, and any innovative ideas to manage health care costs.
The depth of concern about retirement among baby boomers reminds us all just how vital Social Security and Medicare are going to be for generations to come. The importance of receiving financial benefits earned over a lifetime in an era when traditional supports for retirement security are fading cannot be overstated.
I hear from AARP members all over the country that these programs are not just important, they're essential. Today, about half of America's seniors have annual incomes of less than $20,000 per year and, about half of the people in Medicare spend 17 percent of their income on health care costs. More than one in three working households age 21 to 64 has no individual savings set aside for retirement.
Businesspeople, and society as a whole, need to be thinking through the public policies, workplace policies and practical supports to address these concerns.
Business leaders, with their savvy business experience, wisdom, and institutional knowledge, can play an important role in lifting baby boomers' economic gloom and creating long-term value for their businesses and society.
Rob Romasco is the national president of AARP, a nonprofit, nonpartisan organization that helps people from age 50 have independence, choice and control in ways that are beneficial and affordable to them and society as a whole.
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