Archive for the ‘Retirement’ Category
The average American has saved less than 7 percent of his desired retirement nest egg. Even those fast approaching retirement age are not well-funded. Respondents aged 50 to 59 have saved an average of only $29,000 for retirement.
Middle-class Americans think they need $300,000 to fund their retirement, but on average have only saved $20,000, according to a survey released by Wells Fargo & Co. Consequently, more than a third of respondents believe they will have to work during retirement in order to afford the things they want or just to make ends meet.
“Middle class” is defined as those aged 30 to 69 with $40,000 to $100,000 in househoAld income or $25,000 to $100,000 in investable assets and those aged 25 to 29 with income or investable assets of $25,000 to $100,000.
This is another blow for Generation Y. The percentage of Americans with at least a bachelor’s degree who are unemployed reached 5.1 percent, the highest figure since the Bureau of Labor Statistics started tracking the number in 1970.
Meanwhile, national unemployment rose to 9.8 percent from 9.6 percent last month. Those with advanced educations have a massive impact on the overall rate of unemployment as that group accounts for 30 percent of the labor force.
Unemployment levels for lower-educated individuals however, still remain much higher. Ten percent of high school graduates are unemployed and an even larger 15.7 percent without high schools diplomas are jobless. That’s particularly troubling when you consider that 30 percent of young people still drop out of high school in the United States.
Creating jobs is obviously a priority for government and business to revitalize our economy. But the unemployment rate will remain high for years to come with so many unemployed workers who have achieved a high school diploma or less.
This Week’s Top Stories from the Geeks, Geezers, and Googlization Grapevine
Working in a call center does not seem to be the Millennial’s generation cup of tea. According to a survey released by Sodexo Motivation Solutions, only 5 percent of the respondents regard working in a call center as exciting. More troubling for call center management is that only 55 percent consider call center work negatively. And the nail in the coffin is that one in three of those surveyed who are currently seeking work would rather claim unemployment benefits than work in a call center.
Some 40 percent of U.S. workers say they’re going to have to delay retirement because they can’t afford to stop working, according to a survey released this week by consultants Towers Watson. The biggest reasons cited were the losses suffered in their retirement savings and the need to maintain company-sponsored health care coverage.
They may not know how to use a computer yet, but a recent poll revealed that some children as young as six months already have an online presence, including their own email address. Antivirus maker AVG conducted a poll of mothers with children under two years old to see when they began uploading pictures of their kids to the web. According to the survey, the average age children acquire an online presence is six months, with more than 70 percent of mothers posting baby and toddler pictures online and sharing them through social networking sites. By the time they are two, 81 percent of kids have what AVG CEO J.R. Smith called a “digital footprint.” Other findings include:
- 33 percent of children have had pictures posted online from birth.
- 23 percent of parents uploaded their child’s pre-birth scan to the Internet.
- 7 percent of babies even have an email address set up by their parents at birth.
While the economy sputters, tensions heats up between the generations.
Lost in the diversity of generational news last week was a common element – the generations are struggling to right themselves following the recession and going forward.
The just released cover story of October’s The Atlantic magazine talks about the Baby Boomers’ last chance to redeem themselves after what the writer Michael Kinsley describes as decades of self-absorbed and self-indulgent behavior.
The postwar generation is leaving a bitter legacy: crumbling infrastructure, crushing public debt, and a reflexive cynicism about all institutions, from churches to Congress to the media. It’s time for redemption…Kinsley urges fellow Boomers to cough up some cash—say, $14 trillion—to fix the mess they’re leaving.
That could be a problem. Boston College’s Center for Retirement Research released a study last week too that exposed a retirement income deficit that few people likely found surprising. The gap between what Americans need for retirement and the amount they have saved is a staggering $6.6 trillion.
“The retirement income deficit is the gap between the pensions and retirement savings that American households have today and what they should have today to be on track to maintain their living standard in retirement,” said Karen Friedman, executive vice president and policy director of the Pension Rights Center. “The retirement income deficit shows just how bad the crisis has become.”
If Baby Boomers can’t maintain the lifestyle they’ve grown accustomed to, they will likely keep working. An article in Fast Company last week offered harsh realities that have stymied Generation Y (also called Millennials). Topping the list was: The Baby Boomers are not voluntarily leaving the workplace! :
The Recession has decimated the Boomers’ opportunity to retire and left them with no choice but to continue to work for the foreseeable future. And, because Boomers are living during a period when medical science is going to continue to improve their ability to be healthy and work, that “foreseeable future” is a lot longer than anyone could have imagined!
As I’ve described in several articles in the past, that’s bad news for Generation X and Generation Y. The Fast Company article goes on to describe several scenarios that will only feed the frustration felt by the jobless Gen Ys and career-stalled Gen X.
Not only are the Boomers going to remain in the workplace but they are also going to retain their positions of authority…If they are forced out of their current employment positions, Baby Boomers will actively compete with the Millennials for other jobs!
And despite being recognized as “digital natives” and the “Internet Generation,” the advantage these young Gen Y adults may be dissipating with time. The fourth harsh reality describes
“…how the Technological Edge the Millennials touted as the differentiator between them and the other Generations in the workplace is diminishing as the other Generations, faced with no choice, close the technological gap. Boomers may never be able to text as fast as Millennials but they will be able to text fast enough for the workplace! And Boomers have the interpersonal skill set to go with the texting skill set!”
Putting the shrinking technology gap into perspective, one group wonders if the technology gap is myth or reality. The author says “I find that Millennial (Google Generation) students have the fastest thumbs in the west and can answer a cell phone call at the speed of light. Beyond this, their technology related skills, from an academic perspective, seem quite limited.”
This was also the topic of conversation before and during a panel discussion last week at Harrisburg University. While all the panelists agree that Generation Y are the most comfortable generation using technology, they may not be the most skilled at applying it in the workplace.
Of course, the more imminent impact of the recession and delayed departure of Baby Boomers will be felt by Generation X. Kinsley wrote in a forum response to his Atlantic article how “Gen-Xers are going to get screwed by [the entitlements and debt government is accumulating] even more than Boomers as the bills come in.”
And while the bills could be huge, the impact on society could be even bigger.
The U.S. Census Bureau released a report, Income, Poverty, and Health Insurance Coverage in the United States: 2009, last week too. It revealed that that one in seven Americans are living in poverty. It also found that more than 8 percent of people between 25 and 34 (mostly Generation Y) are living with their parents.
Education is often prescribed as the solution to society’s ills and as the pathway to regaining our competitive position in the global marketplace. If the prescription is correct, then the patient is dying based on a new report, Yes We Can: The Schott 50 State Report on Public Education and Black Males 2010. Calling it a “national crisis,” the report found that only 47 percent of black males graduated from high school in the 2007-2008 school year. And in New York City, the district with the nation’s highest enrollment in African American students, only 28% percent of its African American males students receive a high school diploma.
Poverty and poor graduation rates are unlikely to significantly increase tensions between generational gaps in the workforce. But ignoring these problems will only add to the burden borne by future generations who will need to figure out ways to support millions of people who are unemployable.
In the short term, the longer unemployment remains high the more resentment will likely build between generations both in the workplace and in our communities.
The more things change, the more different generations of workers become the same, suggests a new study about generational views on careers from Robert Half. The research shows that workers of all ages have a new appreciation for company stability when making career decisions. Yet, four out of 10 professionals polled said they are more inclined to look for new opportunities outside their firms as a result of the recession.
Cross-generational teams bring challenges and rewards. Nearly three-quarters (72 percent) of hiring managers said managing multigenerational work teams poses a challenge. But more than one-third of workers polled felt having a group of employees at different experience levels increases productivity.
What are the most significant generational differences when it comes to workforce planning?
- Generational views on next career steps differ. For Gen Y, looking for a new job is the most common post-recession career plan, whereas Gen Xers polled said they are more inclined to update their skills. For baby boomers surveyed, staying put at their companies was the most commonly cited post-recession career plan.
- More Gen Yers (36 percent) than Gen Xers (30 percent) and baby boomers (24 percent) planned to look for new job opportunities.
- Gen Xers polled were more inclined to enhance their skills sets (38 percent) and build tenure with their companies (33 percent) in the aftermath of the recession than other generations.
- A greater percentage of baby boomers (54 percent) than Gen X (46 percent) or Gen Y (39 percent) respondents said they will work past the traditional retirement age.
- More Gen Xers (34 percent) than baby boomers (27 percent) said they had increased their retirement savings since the recession began.
- More baby boomers (54 percent) than Gen X (45 percent) or Gen Y (35 percent) employees identified the greatest challenge when working with multiple generations as having differing work ethics and approaches to work/life balance; more Gen Yers attributed difficulties to differing communication styles (29 percent for Gen Y versus 16 percent for both Gen X respondents and baby boomers).
But different generations don’t always see the world differently? Many generation similarities do exist.
“Understanding the values shared by nearly all employees, particularly in light of changing economic conditions, can help companies enhance their recruitment and retention efforts,” said Max Messmer, chairman and CEO of Robert Half International and author of “Human Resources Kit For Dummies,” second edition (John Wiley & Sons, Inc.).
- For all generations surveyed, working for a stable company and having job security were two of the most important aspects of the work environment, beating out having a short commute or working for a socially responsible company.
- When evaluating employment offers, salary, company stability and benefits were the most important factors for all three generations.
- Health care coverage, dental coverage, vacation time and 401(k) matching were the highest valued benefits for all generations surveyed.
- The most commonly cited benefit of being part of multigenerational work teams was bringing together various experience levels to provide knowledge in specific areas.
“Many employees, particularly Gen Y professionals, are biding their time in their current employment situations and plan to make a move when they feel the economy is on firmer footing,” said Brett Good, a Robert Half International district president. “Now is the time for employers to take action and outline career paths within their company for strong performers. “
But 2010 was supposed to be the turning point when Baby Boomers left the workforce en masse, retired off into the sunset, and turned the workforce over to heir apparent Generation X and the up-and-coming Millennials.
But thanks in part to the recession, for the first time on record there are more seniors than teenagers in the American labor force.
The orange line in the chart refers to the number of teenagers — workers aged 16-19 — who are in the labor force, meaning they either have jobs or are actively looking for jobs. The blue line shows the number of workers over age 65 who are in the labor force.
As you can see, starting last fall the number of older workers surpassed the number of teenage workers for the first time since at least 1948, when the Labor Department first began collecting statistics. If you look at just the employment of older workers versus teenagers — that is, how many workers actually have jobs — you will also find that older people surpassed teenagers for the first time recently, in mid-2008.
A recent New York Times article cited three primary reasons for the flip?
1. There was always a certain percentage of Baby Boomers and the oldest generation, the Veterans, who would continue to work.
2. Older people are having to work longer.
3. The shift away from defined-benefit pensions toward defined-contribution pension plans, plus the sharp declines in equities since the financial crisis have all conspired to make it more difficult for older people to retire.
4. A weak economy plus a higher minimum wage might be discouraging employers from hiring teenage workers.
Regardless of the cause, joblessness in the Gen Y (aka Millennial) Generation is beginning to make history. According to a recent Pew Research Center survey, a smaller share of 16- to 24-year-olds are currently employed — 46.1% — than at any time since the government began collecting such data in 1948.At best long-term implications of low unemployment for young workers include young adults living at home longer, higher college enrollment, and more internships. But a deep concern is growing how delayed entry into the workforce will translate into employee preparedness, not to mention the loss of lifetime earnings.
More older people needing work + more younger people giving up on work = grandparents surpassing grandchildren in the labor force. But that’s only a short-term statistic? Are we prepared for the long term consequences?
Every day I read through dozens of Google Alerts, RSS feeds, emails and newsletters but don’t know what to do with all the information. So in the first of a series of posts, here are few random, yet sobering, thoughts on the U.S. Labor Market in 140 characters or less - Twitter-style.
There is a finite pool of talent worldwide. Support for our technological and physical infrastructure is in short supply.
Technology has increased its pace whereas educational advancement and talent creation have slowed down.
An obsolete 20th century education-to-employment system can no longer cope with the realities of a 21st century global labor market.
40% of workers in the United States and Canada have basic workforce education skill deficiencies.
Only 25% of America’s current eligible workers comfortably meet the new job criteria.
About 95 million adults are reading at or below the 8th grade level of comprehension, disqualifying them for most well-paying jobs.
More than 90 million U.S. workers currently lack the reading, writing and math skills to do their jobs properly.
Compare this to Brazil, where 88% of adults and 97% of youth are literate and 70% of students complete high school.
Although 64% of high schools graduating seniors enter some form of post-secondary education, only 25% graduate with a college degree.
15% of U.S. high schools produce 50% of all the dropouts.
Young people are eager consumers of technology, but not interested in working in technology careers.
Recruiting, retaining and developing skilled people will become so challenging that many businesses will be forced out of existence.
Computers did not cause mass unemployment, but they did create a major upheaval in the nature of work.
75% of U.S. jobs will require both a good liberal-arts-based general education plus post secondary technical training.
The current education-to-employment bureaucracy chokes the innovation and change we need.
Forget Frederick Taylor’s stopwatch management. Start treating people like “brain workers.”
… it seems that the world will end, not with an explosion, but with a slow grinding halt as everything just stops working. A. Brown
We live in a moment in history when change is so speeded up that we begin to see the present only when it is already disappearing. R.D. Laing
Based on my random thoughts for this week, I must ask: Are employers underestimating the complexity and pace of change? What do you think?
Worried about your next generation of leaders?
You’re not alone. According to a new survey about leadership skills from Pearson and Executive Development Associates Inc. (EDA), 57% of business executives said their leadership talent pipeline was the same or weaker today than it was two years ago. Seventy-five percent said increasing bench strength will be their top business priority for the next two to three years. Is this too little too effort?
When asked what skills were needed to assume executive positions within the next three to five years, respondents cited strategic thinking, leading change, the ability to create a vision and engage others around it, the ability to inspire, and the ability to understand how the total enterprise works. But the respondents also agreed these were the very skills lacking in their current talent pool.
The right successor must have just the right blend of personality, time and experience. And with a more complex and faster changing marketplace destined to be our future, the ability to deal with ambiguity and paradox is paramount. This combination requires innate talent plus development. Creating this competency can take years and many people just are not equipped to ascend to the role. And others who have the skills and experience aren’t willing to give up their personal and family lives in exchange for a promotion and title. What motivated the Baby Boomers doesn’t motivate Gen X and Gen Y.
In addition to lack of skills, a leadership shortage is all but a done deal. When the Baby Boomers finally decide to slow down or retire, pure demographics will stall the succession. Gen X, the succeeding generation, is little more than half the size of the Boomers. And many Gen X and Gen Y are putting family before careers.
One more glitch: while three to five years may not be enough time to develop the next generation of leaders, it might also be too long in a competitive market. Many talented Gen X are tired of waiting for the Boomers to get out of the way. As the economy is rebounding, job offers will start coming in. It is already happening. Competitors and emerging companies are scouring the job market for talent and your next leader could be their target.