February 23, 2024

Older Workers Are Delaying Retirement – What is the Problem?

It appears that Older Workers are Delaying Retirement; and if one looks at corporate lay off’s it is no surprise to see this trend. Why? In the past many corporations would retire a large percentage of their workforce, but that is not the case anymore. Instead they are staying put with fewer employees so that they can cut costs, and make up for the money they are losing in retiree health insurance. In fact this could be costing them more in profits in the end, because of the number and quality of the laid off employees.

Older workers tend to be less mobile than younger workers, so finding work is harder. Older workers have less education than younger workers, and therefore jobs that offer higher wages tend to be fewer in existence. This is also true when it comes to promotions within the company. Since more people are retired, the top management is often older, and thus it is harder to move up the corporate ladder, because you have a lot more senior management to compete against.

All of these things can lead to Older Workers are Delaying Retirement. However, one solution may be available to help them cope with this issue. A company may provide an Older Worker’s Adjustment Pay to make retirement time much easier. This type of adjustment would be different depending on the company, so if you are working in California, maybe your California employer would be willing to help pay for some of your retirements.