Workers Expect Less In Retirement

Feb 05, 2004

By George Anderson

A study by Towers Perrin, a personnel consulting firm, has found that employees are resigned to having employers cut their retirement benefits.

According to the study’s findings, 75 percent of companies have either already reduced medical benefits for retirees or are planning on doing so. Two out of every three companies
surveyed indicated they have shifted more of the costs for medical benefits to former employees.

Kathleen FitzPatrick, a senior consultant with Towers Perrin, told the Associated Press, “The study confirms the reality of retirement.”

Another reality of retirement in the future is that fewer people will be able or willing to do it full-time. Seventy-eight percent of workers responding to the Towers Perrin
survey said they expect to continue working after retirement.

Thirty-five percent of employees said they will continue to work after retirement for financial reasons. This number could jump even higher if it turns out the 28 percent who
believe the government will do away with Social Security are correct.

Moderator’s Comment: What impact will the reduction in retirement benefits shouldered
by employers have on the economy and the future of retailing?

A reduction in benefits offered and paid for by private employers combined with a dissolution of the Social Security system could add up to economic disaster
in 20 to 25 years as the last of the Baby Boomers head into their retirement years.
Anderson – Moderator

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