The survey of 390 companies wanted to see how these small companies are gearing up for the wave of a baby boomer retirement. The sponsoring organization represents firms that handle human resources chores for small and medium-sized businesses, from payroll to administering 401(k) retirement investment plans to helping companies plan for an aging work force.
The organization asserts that small businesses - which have seen an increase of 5% over the last five years of workers between 60 and 64 - may have a more difficult time dealing with a surge of retirees who want to keep working because they have limited resources.
Other results of the survey include:
- Of the nearly 20% of companies who said their workers would stay on after retirement, 37% said their employees were staying on because they liked it and 34% said they liked the income.
- Nearly three-quarters of companies said they offered a 401(k) plan and 53% contribute to it
- Only 8% of companies said they were likely to lose workers to early retirement, compared to 40% who said they wouldn't and more than half who said they didn't know.
- 56% said they see the advantage of retaining older workers after retirement; 12% said they didn't; and 32% had no opinion.
- Only six of the companies surveyed said they offer a phased retirement, in which workers can reduce their hours and start drawing on their pensions; 63% do not offer the plans and 36% were not familiar with them.
- Almost three-quarters of companies said they valued older workers because of their experience, 10% said it would be less expensive than training new employees; 9% say these workers could serve as mentors and trainers; and 7% said they provide continuity
Source(s): National Association of Professional Employer Organizations (NAPEO), Plansponsor.com