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Nearly Half of Executives Plan to Work Past Age 64
Nearly half (44 percent) of almost 2,000 global executives surveyed plan to continue working past the age of 64, with 15 percent planning to work past 70, according to the latest Executive Quiz from Korn/Ferry International (NYSE: KFY), the premier provider of executive search, outsourced recruiting and leadership development solutions.
When asked at what age they plan to retire, the most popular response for executives was between ages 64 and 69 (29 percent). Twenty-eight percent of executives selected ages 60-64, 19 percent selected 55-59, 15 percent selected over 70, seven percent selected 50-54 and two percent selected under 50. Additionally, a majority (62 percent) of executives say they plan to work until later in life than they thought they would three years ago. In a possible clue as to why, 60 percent believe their employers have inadequate retirement benefits programs. “The economic downturn of the past several years has clearly put strains on the retirement savings of all types of employees, including executives,” said Charles W.B. Wardell III, managing director of Korn/Ferry International and head of the Northeast region in the U.S. “We believe, however, there are additional motivations prompting executives to postpone retirement beyond the traditional age. The baby boomer generation is known for its work ethic — and many are simply not ready to slow down, especially as the average life span continues to increase. While this won’t solve the pending demographic shortfall of talent, it will provide organizations with more opportunity to leverage senior talent and migrate institutional knowledge to younger workers.” The Executive Quiz also examined the issue of knowledge management and how companies are preparing for the imminent retirement of tens of millions of baby boomers in the coming decade. Less than half (41 percent) of respondents believe their employers are “very concerned” or “somewhat concerned” about the potential for losing critical knowledge as baby boomers retire. Additionally, just 21 percent say their company is actively taking steps to retain critical knowledge that might otherwise be lost as boomers retire.
Findings from the Korn/Ferry International Executive Quiz:
At what age do you plan to retire? (No. of respondents: 1,961) Before 50 2% 50 - 54 7% 55 - 59 19% 60 - 64 28% 64 - 69 29% 70+ 15%
Are you planning to work later in life today than you thought you would three years ago? (No. of respondents: 1,973) Yes 62% No 28% Not sure 10%
Do you believe your company has an adequate retirement benefits program? (No. of respondents: 1,582) Yes 36% No 60% I am not sure of my company’s retirement benefits 5%
At your company, how concerned is top management about the potential for losing critical knowledge as baby boomers retire? (No. of respondents: 1,392) Very concerned 14% Somewhat concerned 27% Neither concerned nor unconcerned 28% Somewhat unconcerned 12% Very unconcerned 19%
Is your company actively taking steps to retain critical knowledge that might otherwise be lost as boomers retire? (No. of respondents: 1,248) Yes 21% No 61% Uncertain 18%
Which of the following is your company doing to retain critical knowledge
that might otherwise be lost as boomers retire? Check the biggest priority for your company. (No. of respondents: 1,158) Identifying critical knowledge issues 43% Setting up formal mentoring programs for knowledge transferring 31% Offering phased retirement to critical employees 8% Encouraging older employees to work part-time or consult 18%
Methodology The Korn/Ferry International Executive Quiz is based on a global survey of executives registered with the firm’s online Executive Center, www.ekornferry.com. Respondents from nearly 100 countries, representing a wide spectrum of industries and functional areas, participated in the most recent Executive Quiz between October 2004 and January 2005.