Executives Delay Retirement Plans According to Korn/Ferry Executive Quiz

LOS ANGELES - Results Reveal that More than Half of Executives Plan to Retire After Age 64

- Concern About Losing Baby Boomers from the Workforce Increases

The reality of deflated retirement savings accounts may be causing global executives to re-evaluate how long they stay in the workforce. The latest Executive Quiz released by The Korn/Ferry Institute reveals that a majority - 52 percent - of executives plan to retire at age 64 or higher, a jump of eight percent compared with results collected in 2004 when Korn/Ferry last surveyed executives about retirement plans.

Regardless of retirement age, the survey results reveal that the majority (63 percent) of executives are planning to work later in life than they expected just three years ago. Only 25 percent of executive respondents have not changed their retirement expectations recently. When asked if their company provides adequate retirement benefits, 53 percent of executives said no, 39 percent said yes and a surprising eight percent said they were not sure of their company’s retirement program.

While executives may plan to work until later in life, results also show that companies are increasingly concerned about losing critical knowledge that resides in Boomer-age employees. Forty-eight percent of respondents said their companies are either very concerned or somewhat concerned about losing critical knowledge as Boomers retire, up seven percent from 2004.

“While Boomers are planning to stay in the workforce longer than originally planned, there is still a real sense of urgency for companies to benefit from their experience and ensure that this knowledge is handed down to the next generation of leaders,” said Joe Griesedieck, vice chairman and managing director, Korn/Ferry. “Implementing programs to facilitate a seamless information exchange from one generation of executives to the other continues to be a critical issue impacting corporations worldwide.”

When directly asked if the economy was to blame for altering retirement plans, executives were split. Nearly half (48 percent) said yes - whether it be a delay in retirement age (32 percent), change in savings strategy (14 percent) or taking early retirement (two percent). The remaining 52 percent believed the economy has not had a direct impact on retirement plans.

Methodology

The Korn/Ferry International Executive Quiz is based on a global survey of executives registered within the firm’s online Executive Center, ekornferry.com. Respondents from 70 countries, representing a wide spectrum of industries and functional areas, participated in the most recent Executive Quiz in April and May 2009.

About The Korn/Ferry Institute

The Korn/Ferry Institute was founded to serve as a premier global voice on a range of talent management and leadership issues. The Institute commissions, originates and publishes groundbreaking research utilizing Korn/Ferry’s unparalleled expertise in executive recruitment and talent development combined with its preeminent behavioral research library. The Institute is dedicated to improving the state of global human capital for businesses of all sizes around the world.

About Korn/Ferry International

Korn/Ferry International, with a presence throughout the Americas, Asia Pacific, Europe, the Middle East and Africa, is a premier global provider of talent management solutions. Based in Los Angeles, the firm delivers an array of solutions that help clients to attract, develop, retain and sustain their talent. Visit www.kornferry.com for more information on the Korn/Ferry International family of companies, and www.kornferryinstitute.com for thought leadership, intellectual property and research.

Source: Korn/Ferry International

Asia Pacific: Carol Lo, +65-6231-6219, carol.lo at kornferry.com, or EMEA: Juerg-Herbert Baertschi, +44-20-7312-3178, juerg-herbert.baertschi at kornferry.com, both of Korn/Ferry International; or The Americas: Kevin Oates, +1-310-584-8331, kevin.oates at ketchum.com, for Korn/Ferry International