Our Aging Workforce
By Wade H. Mayo, President, Life Insurance Company of the Southwest, member of the National Life Group
Last month Fortune ran an article about how our workforce is getting older, due to Boomers trying to make up for lost savings to the market crash of ’08 and having longer life expectancies. The article poses an interesting question about how companies will deal with benefits:
“With an older workforce comes big questions about how companies will handle health benefits. Bruce Richards, chief actuary in the health and benefits business at Mercer, a human resources consultancy, predicts that companies will look to alter the kinds of treatments they will cover and put more responsibility for payment on all their employees — not just older workers. As for retirement savings plans, companies will continue to move away from traditional pension plans and offer all workers defined-contribution plans, a strategy that takes pressure off corporate earnings.”
As companies trend toward scaling back healthcare and retirement packages, it’s more important than ever for workers to take their future into their own hands. Planning for your imminent health and living expenses may seem daunting, but it’s worth taking the time to map out a strategy. For many, a large part of that savings includes lower risk options, as the older you get, the harder it is to recuperate losses from high-risk vehicles like the stock market. To determine how much you’ll need to save, talk to a trusted financial agent or professional or take advantage of free online calculators.
What resources have you used to help plan for your retirement?