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retirement challenge

How Retirement is Becoming More Challenging for Older Employees

Over the past few years, it has become more challenging than ever before for employees over the age of 55 to secure positions that are within their normal pay ranges – regardless of how experienced or qualified they may be. Some of the most common remarks these individuals hear include the fact that they are overqualified for the position being applied for or that businesses cannot afford to pay them the wages they are used to earning. 

Forced to Accept Smaller Paychecks

The sad reality is that older employees are usually among the first to be laid off from the very companies where they have invested many years of their working careers. When they are searching for a new job, it often takes several months or even a year or two before they’re able to find any company that will be willing to employ them – but in the meantime, bills still need to be paid regularly. 

Skipped mortgage payments, overdue utility bills and depleted retirement savings cause a number of these experienced and often highly qualified employees to grab at any position that comes available – just so they can continue providing for their families. 

By the time they’ve reached 55, several employees have not only become accustomed to a specific lifestyle; many people forget that these individuals often still have children living at home as well. 

More Older Employees Now than Ever Before

More individuals than ever before that are over 55 are employed these days, and the average jobless rate for them is just over 3% in comparison to almost 4% of the rest of the working population. However, upon finding themselves suddenly jobless, older workers end up remaining unemployed for longer than their younger counterparts. 

Upon reaching 60 and older, employees also have to deal with steadily declining wages – and pay rates continue declining regardless of the amount of experience or education these valuable employees have. 

Why Individuals are Working Longer

People are living a lot longer and staying healthier than ever before, and the rate of standard pension plans is also phasing out quickly. This means that there is less chance of them receiving guaranteed income when the time comes for them to retire – resulting in many older persons wanting to continue working for as long as possible. 

This could fill the large gap in the economy in that the continual labor shortage could be virtually eliminated by hiring older employees. However, not many companies seem willing to hire these valuable employees because they tend to think that productivity rates will decrease when they reach a certain age. However, this is not always the case – there have been many instances where older employees have far outperformed those that are even half their age. 

Employers often forget that older workers possess extensive experience and this can prove to be extremely valuable in a number of situations – especially when younger employees simply don’t possess the knowledge or experience to resolve a specific issue. 

If you would like to find out how you can do everything possible to provide a livable income during your retirement, get in touch with us today.

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