Baby Boomers who continue working past the age of 65 are a boon to their employers, according to a new survey by BMO Retirement Services. The survey, which polled 412 employers who offer retirement plans, found that 45 percent believe that the Boomers staying on as employees is a good thing. Only 4 percent believed it would have a negative impact on companies.
Nearly a quarter of employers surveyed felt that the percentage of working boomers who postpone retirement could exceed 50 percent in the years ahead and nearly half of respondents predicted that more than 30 percent of boomers would fall into this category.
“Although some companies will continue to offer buyouts and retirement packages to their older staff, our survey suggests that many businesses will be pleased to retain selected boomer employees,” said Todd Perala, director of relationship management at BMO Retirement Services. “There appears to be a growing recognition in corporate America that employees in their 60s possess valuable institutional experience and expertise.”
It used to be that companies felt older employees were a burden on company health plans, would limit job opportunities for younger workers and would be less proficient using new technologies.
“Despite these common perceptions, our findings suggest that a significant contingent of today’s companies see value in maximizing experience,” Perala said.
Some Boomers work longer because they haven’t saved enough for retirement, but others just like to work.
“As life spans increase, retirement at age 65 may increasingly be seen by employers and employees alike as a relic from the prior century,” he added.
BMO Retirement Services is a part of BMO Global Asset Management and it provides retirement, trust and custody services.