ABSTRACT
The first "Baby Boomers" turned 65 in 2011, but many did not wait for age 65 to retire. This posed a dilemma for employers. Many employees who are looking toward retirement, are demanding enhanced retirement benefits. In addition, employers facing worker shortages are seeking and taking steps to entice older workers to keep working in some capacity – part-time, ad hoc, etc. (Dessler, 2008). As the baby boom generation (76 million born between 1946 and 1964) moves into its retirement stage, it is estimated that only 10% to 20% are saving enough to retire comfortably. At the heart of the problem, the United States has the lowest savings rate in the world, at less than 5% of individual income as compared to Japanese and Singaporean workers who save at a rate of 20% and 42%, respectively. Those countries have prepared their citizens well for retirement security (Kadlac, 1993). In the United States, the risk of retiring with inadequate income may be offset through either personal savings (including insurance, 401(k) plans, or annuities), private pensions, or government sponsored programs. In the past, research has been directed towards retirement plans established by large businesses. There is however; increasing attention directed toward the need for retirement planning as an employee incentive in small and minority and women-owned businesses for the 21st century workforce.
Keywords
Pension Planning, Retirement Plans, Employee Incentive, ERISA, Pension Relief Act