Week 9 Discussion 2
“Obstacles and Opportunities due to Retirement of Employees”
Please respond to the following:
From the eActivity, discuss at least two of the eight obstacles and opportunities that best address an agency’s challenge of 45% of its workforce retiring in the next 36 months. Provide a rationale for your views.
Approximately 10,000 baby boomers are reaching retirement age per day, and an increasing number of federal employees are preparing themselves both financially and mentally for the next phase of their lives. However, today’s workforce faces a host of considerations and challenges in laying the groundwork for a smooth and secure retirement.
Only 42% of federal employees report feeling prepared or very prepared for retirement, while an equal percentage of respondents feel just somewhat prepared. Confidence also varies depending on pay grade those at the GS/GM-13 through -15 grade levels and members of the SES feel more prepared for retirement than do employees ranked GS/GM-12 or below. Furthermore, respondents covered by the Federal Employees Retirement System (FERS) are less certain about retirement readiness than their Civil Service Retirement System (CSRS) counterparts, indicating that the expanded investment variables offered by the newer system may result in greater ambivalence with regard to preparedness.
Many federal employees on the brink of retirement report feeling less financially prepared than they would like to be. With living expenses skyrocketing, it is more important than ever that federal employees calculate the costs associated with retirement including potentially disruptive factors such as economic downturns and medical needs and formulate a concrete strategy for accommodating these costs. Furthermore, federal employees should also devote adequate consideration to the psychological aspects of retiring: while many focus on bolstering their financial portfolio, it is equally crucial that individuals plan for the new lifestyle and identity that comes with transitioning to retirement.
Confronted with a multitude of financial and mental considerations, many individuals are unsure of how to approach the subject of retirement. Employers can be an essential bridge in these life transition agency resources such as personal counseling and financial planning assistance can help federal employees evaluate their financial situation and benefits as well as guide them through the emotional considerations of retirement. Moving forward, agencies might focus on expanding both the availability and variety of retirement planning resources as well as gauge employee satisfaction with the quality of existing resources.
Surfing the Retirement Wave. (2016). Retrieved February 14, 2017, from http://www.govexec.com/gbc/surfing-retirement-wave/