65 is the New 50 By Sharon Emek , Ph . D .
More employees are working beyond traditional retirement years . But is the insurance industry prepared to accommodate ? Time was you ’ d work until you were 65 , get a watch and a pat on the back , and head right into retirement . In fact , just 25 years ago , only one in 10 workers planned to work beyond age 65 .
Today , that number has risen beyond 50 %, according to the 16th Annual Transamerica Retirement Survey . Of those surveyed , 82 % of workers aged 60 and beyond expect to or already working past age 65 .
The Boomer generation is breaking the traditional boundaries of retirement , and the reasons are myriad . On average , Boomers are better educated ( hence holding higher-paid positions ) than their parents and more physically fit than their parents . And possibly not as financially prepared to retire as previous generations were . Financial pressures on the older workforce are greater as many older workers are stretching their savings to help support college-age children as well as care for aging parents .
Yet it ’ s not simply financial reasons that cause older workers to want to continue to work . The AARP Public Policy Institute found that the desire to remain active and make a contribution are also important factors . They ’ re still working because they want to .
But not surprisingly , retiring Boomers want their remaining work years to have more life-work balance . With years of institutional knowledge and current technology , they want to transition those skills into a job that allows them the ability to work from home and enjoy more time in their retirement . Yet few insurance firms have adapted to this new reality .
Stereotypical Roadblocks That could be a misstep that costs insurance firms dearly in terms of loss of talent , and one that shouldn ’ t be overlooked . The US Bureau of Labor Statistics reports that 74 % of insurance professionals are aged 55 or older . By 2018 , one-fourth of insurance professionals will be within five to ten years of retirement . It behooves the industry to retain the knowledge and talent of the older workforce for as long as possible . Yet misperceptions of the older worker are getting in the way . AARP reveals that employers are concerned that older workers aren ’ t : up-to-date on technology ; able to handle the job ’ s physical demands ; are contemplating retirement ; don ’ t adjust quickly to change ; don ’ t fit with the workplace culture ; cost more in terms of benefit costs , and ; need more sick days and health-related benefits . Employers view older workers as burned out , slow to adapt , less healthy , and unable to work with younger colleagues .
Ironically , insurance firms often cite finding and keeping qualified staff as their top challenge , and will concede that losing talented , experienced older workers is just as big a concern . And while they note that hiring millennials is just part of the solution , they also realize the transfer of knowledge is a large gap they need to fill .
Why Older is Often Better Studies show that such perceptions are misguided , and that the knowledge gap , in many cases , is easily solved . That ’ s because the older workforce brings much more than knowledge to the job . Research conducted by the University of Kentucky found that companies are coming round to the value an older worker can bring to the job . Employers listed the following perceived benefits of hiring older workers :
• Dedication to the company
• Customer service focus
• Dependability
• High productivity
• Strong work ethic
• Institutional knowledge
According to a recent AARP / Aon Hewitt report , these employers are right . The report found that 65 % of employees aged 55 + are engaged in the workplace , more so than their younger counterparts , whose level of engagement topped out at 60 %. As the report suggests , a 5 % increase in employee engagement equals a 3 % incremental revenue growth . Also , the report found that the 50 + workforce is not significantly more expensive than the younger workforce , and that the older workers have the added advantage of experience , professionalism , and knowledge to bring to the table . Plus , older workers , the study shows , have a strong work ethic and a lower rate of turnover .
The fear that older workers will retire is valid , yet many 50 + workers aren ’ t even thinking about it . The study shows that the reason employees remain working past age 50 , beyond financial reasons , is the psychological and social satisfaction they get from the work .
Courting the Veteran Worker So it ’ s to great benefit for the insurance industry to retain the talent that helped them achieve success . That means giving older workers the opportunity to continue to contribute . According to The Sloan Center on Aging & Work at Boston College , that means making sure the 50 + crowd has opportunities for meaningful work ( a key reason many cite as why they ’ re still working ), and that employers are promoting constructive work relationships .
The insurance industry has a great challenge ahead as the older generation of workers considers their professional futures . It ’ s also an opportunity – insurance firms that can change their attitudes toward the 50 + workforce and reinvent business as usual can capitalize on the immense benefits that come from holding on to knowledge and expertise .
At WAHVE we agree . As pointed out above , it is clear that the attitudes of insurance firms toward older workers need to be reset . WAHVE is helping reimagine both staffing and retirement in the insurance industry and bridges the gap between insurance firms ’ staffing needs and seasoned professionals ’ “ work-life ” balance preferences as they phase into retirement .
10 KANSAS INSURANCE AGENT & BROKER | November - December 2016 |