Looking to Benchmark Pay?
The Future of Retirement
Social Security’s Old-Age and Survivors trust fund will be depleted by 2035 according to the Social Security Board of Trustees. Unless it is replenished by Congress, the fund will then be able to pay only about 83% of benefits, all of it coming from current taxpayer receipts.
"The Social Security program plays an important part in providing for families, children, and older persons in times of stress. But it cannot remain static. Changes in our population, in our working habits, and in our standard of living require constant revision."
— President John F. Kennedy (June 30, 1961)
Trouble brewing
Social Security won't work if it doesn't change with the times. And it's not the only retirement system in trouble.
Few companies still offer pensions to their employees because they cannot afford to keep them funded. The 401(k) has become the most common retirement instrument but retirement funds are not guaranteed, and employees are left to make investment decisions on their own.
Your role
Regardless of when or if baby boomers decide to retire, this generation will affect your role as a human resources professional. It's important to plan now to meet the changing retirement needs of America. But you may have an advantage.
Many human resources executives are baby boomers themselves. If that's you, you're in a unique position to fulfill retirement desires and your organization's basic business needs. But it won't be easy.
Revamping the big retirement picture brings to light some touchy issues, including what:
- employers are able to provide
- employers are responsible for providing
- workers want
- workers need
- American culture is willing to support
In this course, we'll take a look at some of your retirement plan options.
Memory Jogger
Americans who retire in 2040 can expect to receive about what percentage of the Social Security benefits they are due?