A new survey indicates that employers are highly in favor of their older workers staying on the job past retirement age and believe that their doing so will be a net positive for the company.
According to BMO Retirement Services, which polled 412 employers, approximately 50 percent of them said they expect to benefit from their employees who keep working past the traditional retirement age of 65. Just 4 percent thought that delaying retirement would wind up being a bad thing.
Todd Perala, director of relationship management for the asset management firm, noted that in recent history employers have been less inclined to favor retaining older workers because they typically command a larger paycheck than those who are younger.
"Although some companies will continue to offer buyouts and retirement packages to their older staff, our survey suggests that many businesses will be pleased to retain selected boomer employees," said Perala. "There appears to be a growing recognition in corporate America that employees in their sixties possess valuable institutional experience and expertise."
He also noted some baby boomers may be more prone to remain at their current job because they have insufficient savings. This may result in more insurance sales for agents, as securing life insurance often serves as an effective retirement preparedness strategy.