Baby boomers control over 80% of personal financial assets and more than half of all consumer spending. They buy 77% of all prescription drugs, 61% of over-the-counter drugs, and 80% of all leisure travel. And now, according to statistics from The ADP Research Institute, they are about to retire in full force.
Assuming the average retirement age to be about 61 years, the new report estimates that in the next 5 years as much as 18% of U.S. employees will retire. The study drew from statistics from about 52,000 U.S.-based organizations composed of about 16 million active workers.
Various industries in the study yielded varying results. 28% of employees in public administration are estimated to retire soon, as opposed to a low of 9% reaching retirement age in the hospitality industry. This naturally follows workforce trends; the average age of public administration employees is 47 while the average age of workers in the hospitality industry is 34.
Why is this important? A retiring employee means the loss of skilled talent for a company, and numerous retiring employees can mark a significant loss to an entire industry. Although not all retirement-age workers will actually retire, statistics this high can pose a significant influence on a company’s future workforce. “Businesses will want to assess how their own workforces compare to the averages and consider strategies for recruitment and training in order to replace the significant loss of knowledge, experience and company culture that can be expected.” -Ahu Yildirmaz, Sr. Director of Market Insights at the ADP Research Institute.
“Benchmarks achieved through in-depth research give HCM professionals a new ability to tap the full talent pool and manage their most valuable asset — people,” according to Don Weinstein, Senior Vice President of Product Management at ADP. “The power of ‘big data’ is a growing force in driving strategic business decisions.”
If you have employees nearing retirement age, remember to consider what this will mean for your business so you can effectively plan for the future. And if you are in the need of employees, contact your state employment agency to see if they assist with placing workers in jobs. Many times these services are free for employers and they help with the employee search and placement.
