Eighteen percent of the workforce could retire within the next five years.
The finding, in a recent report by the ADP Retirement Research Institute, a research arm of the global provider of human capital management solutions, is an appropriate reminder of the heft of the Baby Boomer generation and the impact their aging will have on society.
The report examined six industries industries including hospitality, public administration, manufacturing, health care, education and retail. The percentage of individuals anticipated to exit the workforce ranged from 9 percent in hospitality to 28 percent in public administration.
Many have contended that due to the financial crisis and increased life expectancy among various other factors, people will be working past traditional retirement age. For the purpose of the study, ADP assumed that the average retirement age was 61. Researchers concluded that in many industries, individuals will retire at 61 despite theories suggesting otherwise.
Although the run-off of Baby Boomers could help bring down a disproportionately high youth unemployment rate, many industries value their older, experienced workforce and fear the impending retirement wave.
“Retirement data provides a critical glimpse into the future of a company’s workforce. Businesses will want to assess how their workforces compare to the averages and consider strategies for recruitment and training in order to replace the significant loss of knowledge, experience and company culture that can be expected,” according Ahu Yildirmaz, Sr. Director, Market Insights at the ADP Research institute.