Care to work a little longer? Research is showing the trend of a growing number of seniors electing to stay in the work force. A recent Pew research poll of those 65 and older put it at 18.8 percent, which is a solid increase from the percentage from the 12.8 percent of May of 2000[i]. This rise is significant across other senior demographics, too.

Working longer isn’t necessarily bad or good.

In and of itself, having more seniors in the work force isn’t a bad thing. Many retirees choose to work longer because they like it. What experts are taking note of is just how many of these workers are delaying retirement for necessity—how many among them simply aren’t in a position to retire.

Companies are gradually seeing this bump as a liability.

Cast in this light, an ageing work force means reduced quality of life for workers, and potentially reduced efficiency and work quality for employers[ii]. With a majority of the planning burden falling on the shoulders of the retirees themselves, and with many lacking the help of a retirement planner, even in the Irvine area, some experts argue that employers may begin to feel the negative effects. They argue that employers should begin viewing this increased financial insecurity as a liability.

Healthy, happy employees are more motivated, successful, and productive. This is the overarching logic behind an employer’s decision to offer competitive benefits packages. HR departments would do well to view an employee’s financial wellbeing as part of this overall wellness. There are employers out there who are starting to see things this way. According to a survey conducted by consulting firm Willis Towers Watson, almost six in ten employer retirement plan sponsors identify a workers’ inability to retire in a timely fashion is a top risk[iii].


So what is an employer’s responsibility in the area of an employee’s retirement plan? Improvements that can ramp up employee participation, and therefore readiness for retirement include added features, such as automatic enrollment, as well as automatic escalation of plan deferrals. Other improvements can include increasing the options for employees—adding a Roth 401(k) option, for example.

At the heart of any HR department’s efforts to ramp up employees’ readiness for retirement will be education. Personal guidance is needed, and employers who want to improve the financial wellbeing of their employees will need to address the issue as such.

It is encouraging to hear the topic of financial wellbeing discussed in the workplace. At present, though, the vast majority of workers are left to fend for themselves. It holds true that you’ll need to take charge of your retirement as early as possible, so if you’re looking for a retirement planner in the Irvine area, call Miramontes Capital today to get a leg-up in the planning process.

[i] Span, Paula. “Of Retirement Age, but Remaining in the Work Force.” August 1, 2016.

[ii] Gladych, Paula Aven. “Employers Prioritizing Financial Wellness, Retirement Readiness.” August 10, 2016.

[iii] Ibid.