June 28, 2016/ Australian Workforce
Will our generation ever be able to retire? The solution to retirement is here. Across the globe we see governments raising the age of retirement to support an increasingly aged population. At the forefront of this change are the Generation Xer’s who have just hit their 50’s and will be the first generation to feel the full effect of these changes.
In China the government is planning to increase the retirement age significantly next year as it forecasts an $11 trillion shortfall in funding over the next 20 years. Countries such as the UK and Australia have already increased the age of retirement incrementally by 6 months every 2 years till the age of retirement reaches 70 in 2035.
Some retirees however find themselves in a position that is known as “rehirement”. Adding to the idea of relinquishing your retirement, rehirement is the act of retiring and then moving on to being rehired. The decision to get rehired is entirely up to the individual, whether it is motivated by financial concerns or just recreational. With the increase in people looking to get rehired combined with the idea of a no-retirement career, companies and organisations can really maximise productivity if they consider employing an increasingly mature staff that are On Demand, mobile and flexible.
"Temp staff or 'temporary staff" are a valuable addition in the workforce, they work as flexible employees to mutually benefit and fulfill staffing shortfalls. Businesses benefit greatly by using temp staff as they can have workers ready for them On Demand. This gives them ability to complete necessary work at the time that it is required".
Another trend seen to be gaining up momentum are programs like a phased retirement. In taking into consideration the increased aged population globally, organisations are seen to be increasing productivity in the workplace by embracing a phased retirement program.
A phase retirement program maybe be approached differently within an organisation but essentially offers reduced hours of work throughout the working year. Organisations can reap many benefits by working with their mature workforce to scale-down their workload as opposed to a straight retirement, which then leaves the company with a huge gap of knowledge and wealth. Most of the time these workers are still able to work and want to stay connected to the workforce, whilst others may need to work to build up funds for their retirement. A survey published in 2014 by AonHewitt/AARP identified that roughly 80 percent of workers in their 50s or older would be happy to continue working if they were offered reduced hours.
As our population increasingly ages, employees and employers are faced with a large pool of the workforce retiring in the next 10 years. Companies and organisation will need to adapt and evolve to the changing workforce and come up with a solution to retirement.
The topic of retirement can be a sensitive one and rightfully so. Maybe it’s something that we aren't feeling the full effect of yet so we turn a blind eye to or maybe it's becuase the idea of ageing is a soft topic that we refuse to address as a society but the momentum needs to increase. In saying this there is already an increase in companies working within the On Demand sector. Companies such as Uber, Wonolo, Workfast and Freelancer are pushing the boundaries and addressing the issue of a more flexible workplace.