...Future Trends in Retirement Tamika Mays SOC304: Social Gerontology Instructor Stephen Ulrich June 12, 2012 Future Trends in Retirement Retirement is considered to be a time of enjoyment. It is the time to enjoy your significant other as well as participate in activities that you love to do. However, as the economy and economy has drastically changed over the past several years, so too has the workforce. This essay will reflect on the future trends in retirement. It will also discuss how the percentage of the American workforce has changed and how gender, age, and racial or ethnic groups impact the employment rate. Due to the drastic economy changes as well as the recession many baby boomers have had to change their retirement plans. Retirees and those close to retirement lack the time to properly recover from job losses, falling home prices, and investment portfolio losses. Their retirement options are to work longer, save more, or settle for a lower standard of living in retirement. It has become a trend for many older Americans to dip into their savings to cope with the change in economy. According to Quadagno, about a quarter of American ages 50 and over report exhausting all their savings and that near half of them have had trouble making ends meet because their household expenses have increased, while the household income has fell. Also, many older Americans are choosing to delay retirement because there is not enough money saved or simply because they cannot afford...
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...growing trend that shows no obvious signs of slowing down. With each generation, more people are born and each generation will continue to have a larger population than its predecessor. The result is an increase in the need for funding the medical care for this aging population. We currently have Medicare and Social Security, but just like every financial source, it has its limits. It has been predicted that by the time the baby boomers grandchildren reach the age for retirement, there will be a lack of or absence of the resources necessary to fund their Medicare and Social Security benefits. There does not seem to be any resolutions to this issue. The only possible solution to this current issue is prevention. There are two different types of prevention. The first is preparation for the financial deficit toward health care for this group is a pre-meditated and sustained savings plan. Most people save their money for retirement, but not for medical care. The reality is that people spend more money on health care during later years that on vacation or retirement. Today’s retirees are often still working part-time or full-time in many cases in order to afford their medical care. Increasing the age of retirement cannot help the problem if individuals are still not able to afford their healthcare without Medicare and Social Security. With the state of the economy and the projection of the combined aging population and the decrease in program funding, increasing the retirement age is...
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...Social Security Planning Even though Social Security was designed to take care of us in our retirement years, a secondary retirement income to coincide with our social security is an extremely important consideration if not a necessity. One has to take many considerations that into account when deciding whether or not to plan a secondary income source to coincide with their retirement benefits. Tax rates, inflation, Cost of Living Index and even geographic location play an important role on the ability to live comfortably on social security in retirement. Other things that need to be taken into consideration are not only current economic criteria but future economics as well. Many analysts predict, using current data and future projections, that by the year 2044 the Social Security Administration will no longer have any funds, in which to disburse to retirees. When talking about retirement planning, one has to begin by being aware of and understanding economics and how these affect not only current, but future trends. Quite a bit of information is available at the Social Security Administration Official website – www.ssa.gov. From this site one has access to different financial calculators and other resource links, one of which is a very detailed downloadable retirement planning guide, entitled – Taking the Mystery out of Retirement Planning. This guide has been developed by the U.S. Department of Labor, Employee Benefits Security Administration and its partners. Another...
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... Their organization has over 500 employees and prides themselves on providing their customers with high quality merchandise to satisfy their plastics needs. They hold an ISO 9000 certification which is an organization that establishes and measures quality control. In order to meet or exceed the level of quality required under ISO standards, Riordan Manufacturing will need to have knowledgeable and skilled employees within their organization. To attract premier candidates for their company, the compensation plan that is designed will need to be fair, rewarding, and competitive. This paper will outline the compensation plan for Riordan Manufacturing and include an evaluation of current trends and predict future trends, internal and external equity, a wage management process and retirement plan, financial influence on the plan’s options, and discuss the methods in which the plan will be communicated to members of the organization. Key Objectives According to Martocchio (2009), “Compensation professionals promote effective compensation systems by meeting three important goals: internal consistency, market competitiveness, and recognition of individual contributions” (Martocchio, 2009, p. 19). It is essential that these objectives are met to retain employees and make them feel valued and appreciated; all while functioning within the organizational budget. As Riordan Manufacturing considers themselves to be a leader within their industry, they understand that listening to...
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...Changes in Workforce Demographics and the Future of Work and Retirement Dr. Jost Lottes Institute on Aging Portland State University No single trend will play a larger role in shaping the social, economic, and geopolitical order throughout the developed and developing world than global aging A historic transformation approaches— the “inversion” of the age pyramid. •!Populations throughout history have all shown a steep pyramid-shaped age distribution—with more young than old people. •!In the near future, starting with developed countries, the distribution will transform into an inverted pyramid— with more old than young people. Pyramid inversion in the developed world—1950 to 2050. year 1950 median age 28.6 Pyramid inversion in the developed world—1950 to 2050. year 1960 median age 29.6 Pyramid inversion in the developed world—1950 to 2050. year 1970 median age 30.6 Pyramid inversion in the developed world—1950 to 2050. year 1980 median age 31.9 Pyramid inversion in the developed world—1950 to 2050. year 1990 median age 34.4 Pyramid inversion in the developed world—1950 to 2050. year 2000 median age 37.6 Pyramid inversion in the developed world—1950 to 2050. year 2005 median age 39.3 WHERE WE ARE TODAY Pyramid inversion in the developed world—1950 to 2050. year 2010 median age 40.8 Pyramid inversion in the developed world—1950 to 2050. year 2020 ...
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...compensation practices in use today. With the current NFL official lockout situation, I was interested in what the two parties disagreed on. It was the future pension plan and salary. ESPN described it as “The agreement hinged on working out pension and retirement benefits for the officials, who are part-time employees of the league. The tentative pact calls for their salaries to increase from an average of $149,000 a year in 2011 to $173,000 in 2013, rising to $205,000 by 2019. Under the proposed deal, the current defined benefit pension plan will remain in place for current officials through the 2016 season or until an official earns 20 years' service. The defined benefit plan will then be frozen. Retirement benefits will be provided for new hires and for all officials beginning in 2017 through a defined contribution arrangement. The annual league contribution made on behalf of each game official will begin with an average of more than $18,000 per official and increase to more than $23,000 per official in 2019.” 1 I believe there are several companies who deal with this occasionally while not on the same big stage. The disagreements between employees and employers are always present. Current compensation includes salary, vacation, and health care to name a few. I will discuss current thinking among Human Resource (HR) advisors, current trends by most organizations, descriptions of current compensations and finally worker retention techniques. Given the shifts occurring in attitudes...
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...between defined-benefit and defined-contribution pension schemes and the trend in these two pension schemes This essay focuses on the differences between defined-benefit and defined-contribution pension schemes as well as alternative reasons why defined-contribution pension schemes are becoming more and more important. Defined-benefit and defined-contribution pension schemes are two basic types of pension schemes. (Clark & Melinda, 1999) Defined-benefit schemes promise a particular benefit at retirement whereas defined contribution schemes only prescribe rules of contribution saving into individual accounts. In general, the size of defined benefit pension is determined by the final salary and the length of service while the income of defined contribution pension scheme is based on the value of the fund at retirement. In the UK, Both employer and employee contributions to the pension schemes are tax-deductible, even though the pension itself is taxable. (Redhead, 2008) Defined-benefit schemes, also known as final-salary schemes, are typically provided by employers for their employees. The schemes promise to pay a specified level of income at retirement. The income is worked out according to the number of years in the scheme and the final salary at retirement. The schemes would provide the accrual rate, typically 1/60th or 1/80th. (Callaghan, et al., 2012) For example, a person’s salary at retirement was £24,000 and he has worked for 40 years until retiring. In a 1/60th scheme...
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...Develop workforce plans, objectives and workforce plans * Implement the workforce plans If Metropolitan University had undertaken a workforce planning process, as part of this process it would have conducted a workforce analysis which would have enabled the University to foresee that it would have a problem of over demand of employees in the arts faculty and a shortage of employees in the business faculty. There are three steps in conducting a workforce analysis, these are: 1. A demand analysis – to identify the future workforce needed to carry out the organisation’s mission, vision and strategic objectives. 2. A supply projection – focuses on an organisation’s existing and future workforce supply. the present staffing and competency profile project out if no (or no special) management action is taken to replace attrition and develop staff 3. Gap analysis – A comparison of the demand forecast with the supply projection to determine future gaps (shortages) and surpluses (excesses) in the number of staff with needed competencies. Demand forecasting could have looked both quantitative and qualitative techniques. Quantitative...
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...Employee Compliance and Benefits Employee benefits and regulatory compliance has evolved over time with the discovery and growth of the United States. Prior to the industrial revolution, most people lived and worked on farms or as craftsmen and “retirement” was something that usually occurred when you could no longer do manual labor. Many were struck down by illness, disease or accident and never made it to retirement age. Without the life-saving drugs and medical care we have today the average life expectancy was barely thirty years. With the advent of the industrial revolution, however, many farm dwellers traded their independence for membership in the ranks of a growing urbanized workforce searching for adequate wages and job security. Employers had a dilemma – they wanted to attract and retain workers while still paying no more than necessary, but also needed workers to leave employment when they became too old or costly. The evolving field of actuarial science was being applied to the fledgling life insurance industry and in turn used to develop pension plans to meet this employer objective. The Revenue Act of 1942 established minimum coverage rules in the tax code that prohibited employers from providing richer pension benefits to only higher paid employees. Employers also were now able to “integrate” and offset their contribution to Social Security benefits against the employer-provided pension benefit. This offset could result in a smaller or no pension benefit...
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...II. Demographic Paragraph on your topic, statement of the problem, delineation of a human diversity issue. (To be submitted in the 8th week) By now, you should be able to articulate a clear topic title of your management project. Create an introduction to your topic by defining a problem/issue that is encompassed by your two readings. Using the Tentative Annotated bibliography and topic statement from week 3, expand your discussion of the connections of your topic to the required components for the project: Systems Theory Model, human diversity, some aspect of family or consumer resource management. After you have developed the connections, delineate the problem/issue by highlighting statistics and facts that make this an important problem or issue for which the class should be concerned/interested. You should go outside the two articles that you have read to find this information. An example might be citing such things as “1 of every 2 marriages ends in divorce” to focus attention on how frequently the marital system breaks down to introduce why you are focusing on how to make a marriage last. Note: this assignment is to total approximately 400 words. (Make sure to identify a source for your statistics/facts that is other than the two articles read.) Title: Parental Behaviors Effecting Children Introduction: From the time that a child is born to their adulthood, they are being influenced by their parents, from participation in physical activity to stress responses...
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...Define and explain the significance of the term ‘derived demand’ as it applies to Strategic Human Resources Planning. (5 marks) Derived demand is defined as a requirement for one product that is created due to the purchase of another product. It occurs for consumers who purchase goods for further production, because their purchases are based on the demand for their final product.[1] For example, when the demand for automobiles is high, the derived demand for steel, and all other products used to make automobiles, is also high. Should the demand for automobiles drop, so will the demand for the products used to make the automobiles. Derived demand applies particularly to strategic human resources planning in relation to labour. Demand and supply of labour interact to determine the wages and affects the allocation of labour resources in ta corporation. It involves anticipating both the need for labor and the labor supply while planning programs necessary to ensure the organization will have the right mix of employees. The demand for labour is derived form the demand for the goods and services that labour is used to produce. Additionally the demand for labour is influenced by the level of economic activity, the productivity of labour and relative cost of labour compared to capital.[2] The demand and supply of labour are influenced by both macroeconomic and microeconomic factors. Macroeconomics refer to conditions in the whole economy affecting the general labour market. Microeconomic...
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...skilled, educated and innovative people and foster high performance work environments that maximize the use of innovation and technology. These outcomes will be met through a strategic framework with four broad themes: Inform, Attract, Develop and Retain. This same framework can be applied at a micro level by an employer or industry sector in developing a strategic workforce plan. This guide will take you through the steps of strategic workforce planning and illustrate how the BETW four-part framework can apply to your organization or company. What is Strategic Workforce Planning? Strategic Workforce Planning is a management process that is being increasingly used to plan for future labour needs, changes and challenges. It examines the current workforce and takes a strategic look at what the future workforce demands will be to develop a human resources plan of action. Strategic Workforce Planning involves identifying, assessing, developing and sustaining employee workforce skills required to successfully accomplish business goals and priorities while balancing the needs and expectations of employees....
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...Charles Schwab: Growth for the Future Marcus Readus & Brea R. Silva Team D Boston University; MET AD 741 October 14, 2013 Abstract This paper will discuss what direction the leading investment Services firm, Charles Schwab Corporation should take over the next ten years. To answer this question, an analysis of where Schwab and the financial industry are right now. In addition, it will examine what social and technological trends are shaping the way financial industry might be heading in the future. Lastly, it will recommend the direction the Schwab organization should take over the next 10 years. Introduction The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 300 offices and 8.9 million active brokerage accounts, 1.6 million corporate retirement plan participants, 895,000 banking accounts, and $2.11 trillion in client assets as of April 30, 2013 (Krieger, 2013). Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions;...
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...pension plans is to provide a fixed income for individuals during retirement. In practice, this means either paying employees a fixed income when they reach a predetermined retirement age or can no longer work due to disability (Dessler, 2005, p. 492). However, since the 1980’s the number of employers offering pension plans has declined. Once considered a common benefit in the workplace and motivator for senior employees to remain with the organization, private pension plans has drastically dropped 74 percent (Carrell & Heavrin, 2007, p. 329). This research paper will first explain how pension plans are classified and then identify several reasons why pension plans has declined. Moreover, it will discuss which pension plans are in use today, and finally, what regulations govern pension plans. Private Pension Plans: America’s Vanishing Benefit When one company after another reneges on its pension obligation toward current and future employees, you know it’s going to get ugly. Just ask any veteran employee of a major airline who may only receive half the value of his/her pension upon retirement. Walsh (2004) reported that United Airlines’ pension payment debt nearly topped $23.4 billion along with another $1 billion for retiree health care benefits (para. 11). In other words, pension payments have the potential to basically bankrupt an industry. How should companies challenge the rising cost of retirement without jeopardizing commitment with their employees? Is this...
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...market collapse wiped out many savings. In some cases, individuals reaching the age of retirement cannot even afford to retire. This environment has provided DBS with an opportunity – facilitating the relocation of Baby Boomers reaching the age of retirement to Panama where due to the lower cost of living and free medical services most US citizen can still retire in style at a fraction of the US cost. DBS will target Baby Boomers and use both traditional and innovative approaches (TV advertisement, newspapers, seminars, and Internet technologies such as Facebook and Google (PPC)) to create an awareness and demand for the product. During the first year DBS will undertake a considerable amount of market analysis and testing before launching the services in order to accurately identify the unique characteristics of its target consumers. After the first year of operations, DBS will reach its break-even point and soon after generate initial profits of 60,000.00; these are projected to increase exponentially and continue to grow in as it captures the potential market. 2.0 Situation Analysis: Just as the Baby Boomer generation changed American culture in the post World War 2 era, the first wave of Baby Boomers reaching retirement age is changing how and where Americans spend their post-retirement years. It’s a common misperception that when Americans reach retirement age, they move to warmer, more senior-friendly environments: a 2005 study based on the...
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