Planning for retirement is not a one-day deal; it should be done from the early career stages, though young people often do not acknowledge it. The retirement package should offer various benefits like −
- Investment Counseling
- Profit Sharing and
- Deferred Compensation Plans.
But earnings today are not enough to lend some for retirement.
Life after Retirement
After the abolition of compulsory retirement and limitation of certain benefit pensions, it has become a necessity to make employees think about their future expense, or Life After Retirement. People today, do not believe in the concept of retirement at 65, it may vary from 50-75 or even more, giving you little more time to plan for retirement.
Many companies, are now offering pre-retirement seminars that raises questions regarding the Financial, Social, and Psychological status related to career transition. It is better if companies offer a flexible work schedule to their employees, which will give them some time to discover their interests and goals while maintaining their bond with their work. This will help them get over the transition stage.
Say, allowing longer vacation for dedicated employees, which will give the employees enough time to establish connections with outside peers and reconnect with their friends and relatives. Starting preretirement program from an early stage can ensure a kind of satisfaction of retirement for employees and can also inculcate the feelings of goodwill towards their employer/company.
Alternative Work Arrangements
People age at different rates. It has been observed that many of the best performances are delivered by people during later stages of their career. Just because an employee has crossed a certain age limit, it does not make them eligible for retirement. Age limits a person’s visual acuity, response time, or stamina, but gifts abundant knowledge and experience.
It is wrong to assume older workers cannot learn new skills, or to be precise, learning difficulties occurs because of lack of encouragement and not from the lack of skills and talent. The problem arises because older workers have not been offered proper training and development chances to keep them more engaged in their careers.
Several companies like Pacific Telephone, Uniroyal and Chrysler are offering a golden handshake or to say, accelerated voluntary retirement programs to their employees. The objective behind establishing a pre-retirement program may vary, it maybe to free-up the obstructed career channels for junior employees or managing a projected labor surplus or manage labor cost savings. It is all about effective planning.