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The current global economic situation has had an impact on retirement planning. This is evident with the statistics that show that more and more employees of universities and colleges are delaying their retirement.

According to a study conducted in March 2009, at least four out of ten people who are fifty or older have plans of delaying their retirement. Many views regarding the preparedness of people for a retired life were discussed. This trend has forced the higher education authorities to re-examine retirement patterns. According to certain professors, the risk of not being prepared for retired life must be posed to the employees that may open their eyes to the gravity of the situation and help them take mature decisions.

They say that information presented in the right manner will get the message across and ensure that people are well prepared and planned for their retired life. With improved investment choices and focus on investment outcomes rather than returns, we can streamline the retirement patterns to a certain extent.

Higher education leaders contemplate various methods by which they can manage the change of retirement trend. Some universities are geared towards offering their employees incentive programs that are linked to early retirement. This offer is linked to clear and crisp targets and goals.

Universities are also not averse to offering healthcare coverage during and after retirement. A possible solution was introduced by the TIAA-CREF. According to the Retiree Healthcare Savings Plan, tax advantage will be provided for the employees and retirees who will hold a sponsor defined, voluntary employer contributed savings account. The money thus saved can go towards paying for the employee’s post retirement health and medical expenses.

Another idea suggested includes increasing the base salaries of employees. Alternately, employees or instructors will be offered fewer courses to teach if they give a declaration that is irrevocable stating that they will retire within a specified period of time.

Another incentive on the cards is to allow the senior faculty who retire, even though they stop drawing salary, to attend and be a part of various activities in the university and college such as seminars and for teaching courses. They will also retain their office and be an active participant in various college functions.

Colleges are also contemplating performance based schemes which pays a rookie more if he shows good results, in fact even more than a tenured faculty. Another idea is to pay a lump amount to a senior faculty and buying back his tenure.

Creating online communities for those who have retired keeps them active and confident post retirement. This was seen when the site www.myretirement.org was created by TIAA-CREF where a lot of retirees interact with each other. They find this site an ideal platform for letting out their feelings and discussing with other members their financial issues, family, retirement life and family.

There is therefore a strong trend towards bringing a balance between the higher education administrators and senior faculty nearing retirement with the help of attractive schemes and incentives.