The baby boomer generation is in the middle of retirement age and several in this generation have already retired. The most common age birth range for the baby boomers is 1946 to 1964. As we start off 2020, those that were born in 1946 are 74 this year and the last year of the group will be 56. The baby boomers born in the middle of the range will be 65 this year. The youngest of the baby boomers have about eleven years left before reaching their normal Social Security retirement age of 67.
My reason for writing this blog is to help organizations know how to best to assist their baby boomer employees with finishing strong as well as transitioning the next generations into various leadership roles. We have at least two banking clients where the President/CEOs are in their early 70’s. They both have succession plans in place and should be retiring in the next few years. The average number of baby boomers retiring each day is around 10,000. We do believe that the pace is going to pick up as we will be in the second half of the baby boomer years starting in 2021.
Below are some valuable tips to allow baby boomers to finish strong, and at the same time, bring on the next generation of leaders to manage your organizations for effectiveness, efficiency and profitability.
- Ensure that the company and leadership knowledge that your baby boomer employees possess is being passed on to the next generations’ leaders.
- Allow your baby boomers to take more time off or work part-time to ease them into retirement and take some of the savings to pay competitive salaries and bonuses to existing/incoming new generation leaders.
- For the key baby boomers that are still in their mid to late 50s, consider some form of tax-deferred retirement plan to keep them from leaving and allow them some retirement cushion beyond the basic 401(k). This will allow this group to transfer their expertise and not worry about having sufficient funds at retirement.
- If you haven’t already, start now to identify key Generation Xs, Ys and new to the workforce Z’s and pay them a competitive base salary as well as provide them with performance-based year-end cash bonuses/stock where most of these funds are required to be placed in a five to ten year vesting account. The key here is to create a balance quickly that the employee can’t access until at least five years out. This gets the younger generation employee past the years where they tend to hop from one company to the next.
Proven high performance companies are good at allowing their employees to finish their careers and start their careers in a strong and meaningful manner. Commit yourself to be in this league of companies.