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BUSINESS Tuesday 12 February 2019
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Liz Weston: Companies are also flunking retirement planning

By LIZ WESTON health insurance and pen- tirement savings.)
Associated Press sion accrual benefits. EMPLOYEES CAN BE AFRAID
Plenty has been written —Another that allows em- TO ASK
about American workers' ployees 60 and older with Another disconnect: Em-
failure to plan adequately five years of service to re- ployers often think their em-
for retirement. Their em- duce their hours by 20 per- ployees aren't interested
ployers seem to be doing cent to 50 percent, or even in more flexible schedules
an even worse job. more if they're willing to or phased retirements,
Only 1 in 10 large employ- lose their health insurance because workers haven't
ers offers a formal phased- benefit. asked. But employees may
retirement program that —An employer that allows be afraid to inquire, lest
lets workers cut back their workers 55 and older with they seem less than gung-
hours or responsibilities be- seven years of service to ho about their jobs or get
fore they quit work entirely, negotiate their own "glide shoved out the door be-
according to the 2018 Lon- path" to retirement, ramp- fore they're ready, Collin-
ger Working Careers Survey ing down from full time to son says.
by professional services full retirement while retain- "Employees may not want
consultant Willis Towers ing benefits. to tip their hands," she says.
Watson. Fewer than 1 in 3 —Yet another company Flexible schedules and
of the companies surveyed that allows any employee phased retirements aren't
offered their employees the to switch to less stressful or panaceas, of course. For
option to work part time or complex duties or phase many, continuing to work
switch to a less demanding to part-time work, retain- This April 2017 file photo provided by NerdWallet shows Liz simply won't be an option.
Weston, a columnist for personal finance website NerdWallet.
job, according to the sur- ing health insurance if they com. The Employee Benefit Re-
vey, which polled 143 large work at least 25 hours a Associated Press search Institute found that
U.S. companies that em- week. nearly half of workers re-
ploy 2.9 million people. Employers that offer walking out the door," says people may need to keep tired earlier than they ex-
That's too bad, because phased retirement typically Susan Weinstock, vice pres- working because they pected for reasons that
flexible work arrangements say the plans are good for ident for financial resiliency haven't saved enough , included layoffs, health is-
don't just help people who business, the GAO report programming at AARP. says retirement trends ex- sues or the need to care for
need or want to work lon- found. FOR EMPLOYERS, RETIRE- pert Catherine Collinson, someone else.
ger. These accommoda- Phased retirement allows MENT CAN DRAIN TALENT CEO and president of the You may think you'll work
tions also could help work- both the company and the AND KNOWLEDGE nonprofit Transamerica In- until you die, in other words,
ers who are starting families, worker to adjust over time, Most employers realize stitute and Transamerica but chances are pretty
pursuing degrees or caring rather than scrambling to retirement is a looming is- Center for Retirement Stud- good that you won't.
for aging parents. deal with an abrupt depar- sue, with 83 percent of the ies. For example, 7 out of Those who do want to
PROGRAMS VARY WIDELY ture. Businesses can plan large employers Willis Tow- 10 employers polled in last work longer, and can, may
Formal phased retirement better since they know well ers Watson polled saying year's Transamerica Survey have to take matters into
programs can take many in advance when an em- significant numbers of their of Employers Were con- their own hands. Collinson
forms. Examples cited in a ployee plans to leave, plus workers are approaching fident that their workers says people can improve
201 7 report by the Govern- they can arrange for ex- retirement age. In fact, 54 would retire with adequate their odds of negotiating
ment Accountability Office perienced workers to train percent of employers be- retirement savings. But 6 out a phased retirement by
include: or mentor younger ones, lieve the loss of talent from of 10 employees had similar keeping their job skills up to
—One program that allows transferring years (and retiring workers will be more confidence. (Studies by the date and focusing on job
workers who are at least 55 sometimes decades) of significant than other labor Employee Benefit Research performance.
years old with 10 years of employer-specific knowl- market risks in the next five Institute have found that 57 "A superstar is going to
service to cut their hours by edge. years, the survey found. percent of U.S. households have greater negotiating
20 percent with a 20 per- "Otherwise, years of institu- Employers may not fully headed by people ages 35 power than the average
cent cut in pay, but keep tional knowledge could be grasp, however, how many to 64 are on track with re- employee," she says.q