This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

The Upsides And Downsides Of An Aging Workforce





In case you weren't convinced by the previous findings, a new survey indicates more American workers are expecting to delay retirement in the wake of financial challenges.

A report released this month by The Conference Board repeats what numerous studies have shown before: Many of those nearing retirement age are planning to stay in the workforce longer as they grapple with declining savings rates and economic uncertainty. According to the study's authors, this situation has potential upsides and downsides for U.S businesses.

Savings rates and assets on the decline

Within its report, The Conference Board notes lost savings is a major factor in employees deciding to work longer. In 2012, 62 percent of 45-60 year olds saw the value of their financial assets drop 20 percent or more and said they plan to delay retirement. That's up from the 42 percent of workers who had that type of savings decline in 2010 and were planning to work longer.

The following factors helped contribute to the increased percentage of workers seeing a decline in their assets:

  • Job losses
  • Salary reductions
  • Savings withdrawals
  • Depressed housing prices

"Even as economic conditions improve, many are still relying on assets to get by," said Ben Cheng, co-author of the report, in a written statement. "And even those who've made it through the worst find themselves needing to work past retirement age to rebuild savings."

The Conference Board found the number of workers planning to delay retirement seems to run across all regions, genders, ethnicities and incomes.

Older workers a mixed bag for businesses

An experienced workforce may be a mixed blessing for businesses, says The Conference Board.

Some industries may be faced with a skill gap or a worker shortage. Firms in these fields may benefit from having an older and more experienced workforce available.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs