Strategies to Retain Older Workers

Janemarie Mulvey and Steven Nyce
WP2004-13

Abstract

As the aging baby boom generation approaches retirement, employers are confronting an evertightening labor market. Defined benefit pensions have long been important source of retirement income, and many employers would like to continue offering this valuable benefit to their employees. Yet many of these plans provide strong incentives to retire early, which may not be consistent with workplace needs. In this chapter we explore options employers face when redesigning their pension plans to create positive incentives for workers to voluntarily work past traditional early retirement age. Incentives may also include work life programs such as eldercare and phased retirement, to help older workers balance their work and family responsibilities.