Pensions, Retirement and Old Age

Age Canada Old Pension By Aida AKL

Gordon Brown has renamed the DTI the Department for Business, Enterprise and Regulatory Reform (DBERR) to reflect its focus on the reduction of red tape and a commitment to entrepreneurship. 2006 Older employees plan to keep on working Older employees are increasingly willing to work on past the traditional retirement age, according to a new survey. called 'baby boomers' have told Heydey, profit organisation set up by Age Concern, they want to work past the state pension age.

Funds Pension (AXcess News) Washington - It's being called the "age wave", and it's causing concern in both federal and corporate circles. And Rudolph Penner of Washington's Urban Center warns that the tidal wave has actually begun, saying, "There are some 'baby boomers' retiring already, and the first group will apply for social security in 2008. And what we're going to see is a huge loss of very experienced people without many younger people to take their place because the birth rate has been very low since the mid-1960s."

A study of both retired and working people has revealed major differences in how they perceive their future lives. Workers predicted they would retire at 62 and then consider themselves 'old' ten years later. The study found retirees were more likely to have stopped work at 60 and remain active till they reached 78 years of age. "Retirees clearly don’t think of themselves as old and past it, " said Steven Folkard, head of pensions and savings policy.

Hancock John Pension Analysts note that baby boomers, people born between 1946 and 1964 are aging. What this means, according to federal statistics, is that workers 55 years of age and older will likely constitute 17 percent of the workforce by the end of the decade. And with projections for mass retirements and low birth rates, more retirees will be called upon to fill the gaps in the workplace.

Pension Widow Victor Marshall, Director of the University of North Carolina's Institute on Aging says when the baby boomer generation begins to retire, a much smaller workforce will take its place. He says, "Three percent of the workforce in the U-S is over the age of 65 right now. You've got 20 percent age 60-to-64; 61 percent is age 25-to-49, and then 15.8 percent is age 15-to-24. So for the group that's going to be exiting, you've got 23 percent who are age 50 years or older. You've got an average retirement age of 62. So half of these people then are going to be leaving in the next decade."

Depending on length of service, air traffic controllers receive 13 to 26 days of paid vacation and 13 days of paid sick leave each year, life insurance, and health benefits. In addition, controllers can retire at an earlier age and with fewer years of service than other Federal employees. Air traffic controllers are eligible to retire at age 50 with 20 years of service as an active air traffic controller or after 25 years of active service at any age. There is a mandatory retirement age of 56 for controllers who manage air traffic.

Fund Pension Despite a 4.5 percent increase in the number of employed senior citizens last year, experts point out that the long-term trend actually reflects a decrease in the number of working older Americans. Polls conducted by the American Association of Retired Persons, or A-A-R-P, indicate that 70-to-80 percent of Americans plan to work in some capacity after retirement. Analysts say that nearly half of the one-point-six million employees in the federal sector will be eligible to retire by 2008. This will entail a loss of expertise that many analysts warn will impact fields such as teaching, geosciences and manufacturing.

Some retired taxpayers receive a retirement pension or annuity, often paid in installments. But in most cases this retirement benefit does not escape taxation. In addition, quarterly tax payments may be due if withholding is not taken out of the monthly benefit. For more on this topic, please review Annuities and Pension Plan Installment Payments.

Investment Pension David DeLong, author of the book Lost Knowledge warns that this exodus could lead to an unprecedented erosion of expertise in the labor force. He adds, "What isn't well known or recognized is that we're now retiring the first generation of professionals and managers who have deep knowledge of complicated technologies like computer systems, advanced scientific fields like pharmaceutical drug development, and integrated and global management processes, such as managing global research and development efforts around the world. And that means that people leaving organizations today have new types of knowledge that didn't exist a generation ago. That knowledge is very hard to transfer and retain."

Canadian Pension Plan The problem is not limited to the United States, but is actually worse in other countries, such as Germany, China, and Japan. Many analysts note that some European countries that have implemented early retirement programs, have now raised the age of eligibility for government pensions to encourage people to work longer. In the United States, companies like chemical giant Monsanto in Missouri, and research and development group, Draper Labs, have begun to connect with their retired employees by creating databases of experts to bring their skills back into their businesses.

Department Pension Work Most analysts say that because many seniors want to continue working after retirement, companies need to come up with creative arrangements that take into account what their older employees want.

Ibm Pension Deborah Russell, Director of the Economic Security and Work Section at A-A-R-P, says companies should plan to deal with returning retired workers in non-traditional ways. She adds, "When we talk to boomers, they say they're looking for flexibility. That's a big issue. It's being able to offer flexible work opportunities because I don't think you're going to get people who are willing to work your traditional nine-to-five. They're looking for things like job-sharing, telecommuting, part-time opportunities and phased retirement. Those are the kinds of things that are going to keep them in the workplace." Ms. Russell adds that as medical breakthroughs allow people to live longer, more companies are offering incentives, health screenings and wellness programs to encourage their employees to lead healthier lifestyles, and reduce health care premiums.

Benefit Corporation Guaranty Many analysts see this trend as an indication that businesses are recognizing the value of older employees in todays technology-driven world. Dorcas Hardy, Policy Committee Chairman for the White House Conference on Aging, says that while many younger workers are highly motivated and reliable, older employees bring a different perspective to the workplace. She says. "I think older persons have had the discipline of a job. They know if they're going to be paid, they have a particular time that they need to be at work. They've been in the workforce longer and they know what their employers' expectations are."

Calculator Pension Nonetheless, Ms. Hardy stresses that employers and employees alike need to understand the dynamics of dealing with an older workforce, taking into account training, flexible schedules and possible age- discrimination. In preparing for the White House Conference on Aging in December, which is expected to make policy recommendations to President Bush on the employment of seniors, Dorcas Hardy points out that disincentives to working beyond retirement age must be addressed. She goes on to say, "There are impacts on persons" pension benefits if they continue to work. There are those who would like to work a little bit and then have some leisure, then go back to work. All of these have an impact on the way in which employers address their business and the kind of perhaps regulatory or legal changes that may have to be done to accommodate our future workforce."

Government Pension Some analysts suggest a phased-retirement approach that would allow retirees to continue working part-time, rather than a full 40-hour week. This, in turn, would entail changes to pension laws, and many private pension plans. But regardless of the approach, most analysts agree that many employers, who have yet to realize the full implications of the age wave, need to begin tackling this problem now.

Pension Prague Sources: Voice of America

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