When most Baby Boomers started working, defined benefit plans were very popular, if not the norm. It wasn't until the early 1980's that 401(k) plans came into existence, although other types of defined contributions plans (such as profit-sharing plans) had been around for a long time. Those coming into the workforce afterwards have had more time to build their account balances. Transamerica reconfirmed that there is a retirement savings shortfall, and many Boomers are inadequately prepared for a long retirement. Equally as important, the study found that there is a disconnect between the expectations and the reality about working during retirement.
According to Transamerica, roughly two-thirds of Baby Boomers plan to continue working past age 65, primarily for income or to retain health benefits. Some will continue working because they enjoy doing so. Most Boomers seek some sort of phased retirement, perhaps working reduced hours or in a different capacity. Nearly half of employers strongly agree that they are supportive of employees working past age 65. By contrast, only 1/4 of employees strongly agree that their employers are supportive. There is a similar disconnect in employees believing that employers will allow reduced roles. The study recommends that Boomers remain employable, but this may be easier said than done. Many employers have policies in place to ensure that they are an age-friendly workplace, but there is significant skepticism on the part of employees that these policy statements are actually supported.