Tuesday, June 25, 2013

Baby Boomers In The Workplace

As the baby boomer generation approaches retirement, many trends are starting to arise.  Not only is there a substantial projected increase in health care as the boomers age, there is also a spike in the maturity of the workplace.  Challenges arise with these changes taking place and businesses along with health care need to evolve with it.
With daily advances in medicine and health care research we hold an expectation for each generation to out live the last.  While the boomers are still predicted to outlive their parents, studies are finding that they will outlive their parents but with greater health risks.  PRB.org states that boomers “are more likely to be obese, have diabetes, or high blood pressure than the previous generation at similar ages.”  This in turn is creating a flood of medical bills for companies taking on their aging workforce, along with healthcare companies compensating for the increase in health needs.
With this surge of older employees occurring, there comes an array of difficulties for businesses.  USA today states “From higher pay levels too more expensive charges for health and disability insurance” older employees are creating a wide range of increased costs that businesses now must take on.  Businesses are having to compensate for such a vast increase of older workers that expect higher salaries while they age with their companies as well as continuous health coverage.
The 2013 Retirement Confidence Survey surveyed 1,254 individuals (251 being retirees) and found that 36% of this group saved less than $10,000 for retirement. More and more individuals are continuing their stride in the workforce due to their lack of funds being saved.
While a large number of boomers are prolonging their careers, there is still a fair amount entering retirement.  With such an influx of individuals happily saying goodbye to their careers and hello to retirement follows with difficulties along the way.  USnews.com states, “The numbers of new entrants into the workforce is likely to fall short of the total of boomers headed for the exits”.  Seeing that the generation following the boomers isn’t nearly the same density, companies are going to feel the need to compensate for such an increase in loyal workers taking their leave.
Both business and healthcare must make the proper changes to compensate for the modifications in these industries.  Without acknowledging and adapting to the trending patterns, both industries will fall short economically and in their overall progression.  

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