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Is an IT Retirement Crisis Looming?

By Dennis McCafferty on 2011-02-03


These days, you are likely so overwhelmed by the number of job applications from out-of-work IT employees that the last thing on your mind is a talent shortage. But two recent surveys, from CareerBuilder and the National Association of State Chief Information Officers (NASCIO), reveal that this situation may very well surface within the next several years. That's because more members of the Baby Boomer generation say that they'll be ready to retire within that timeframe. The CareerBuilder survey indicates that, even as the recent Great Recession has forced a clear majority of older employees to put off retirement, such financial concerns are clearly on the decline. The NASCIO survey indicates that retirement-caused vacancies are on the radar of state CIOs, and many feel they can't offer the level of pay needed to fill those slots. More than 500 U.S. workers aged 60 or older took part in the CareerBuilder survey. CIOs from 40 states, the District of Columbia and a U.S. territory took part in the NASCIO survey. Here are highlights from both surveys:

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65 percent


65 percent of overall (including IT) workers aged 60 or older polled by CareerBuilder say they're putting off retirement because they can't afford it; 72 percent said so last year.

Retirement timetable of these workers (percent respondents aged 60 or older):


Within next two years (28 percent)Three to four years (27 percent)Five to six years (18 percent)Seven or more years (16 percent)Source: CareerBuilder

10 percent


Only 10 percent of workers aged 60 or older don't think they'll ever be able to retire, according to CareerBuilder.

One-quarter


Nearly one-quarter of state CIOs polled by NASCIO predict that 21 percent to 30 percent of state IT employees will be eligible for retirement within the next five years.

One-half


Just over half of state CIOs say they have difficulty recruiting new employees to fill vacant IT positions.

78 percent


More than 78 percent of state CIOs say existing salary rates and pay grade structures present a challenge in recruiting and retaining IT talent.

Skills/disciplines that present the greatest IT hiring challenges (percent respondents):


Security (52.4 percent)Project management (50 percent)App/mobile app development and support (47.6 percent)Architecture (47.6 percent)Analysis and design (42.9 percent)Source: NASCIO

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