The aging population has transformed the workforce—approximately one in four employees is age 65 or older. While this demographic is becoming the fastest-growing group of workers in the U.S., they’re also poised to trigger the largest wave of retirements in America’s history, known as the “retirement tsunami.” Still, many older workers are choosing to remain in the workforce for financial reasons, due to diminishing retirement savings and/or caring for adult children.
These trends are creating unprecedented challenges for employers, according to a recent Employee Benefit News article. On the one hand, retirement-age workers offer stability and reliability at a time when hiring is a challenge. On the other hand, older workers who choose to delay retirement or return to work after retirement may create barriers for younger workers seeking career advancement and drive up healthcare costs for employers.
Still, employers have an opportunity to benefit by addressing the unique needs of a retirement-age workforce. Doing so can help smooth their transition to retirement while preparing the workplace for a shift in workforce demographics. Offering financial wellness benefits is a good start, but there are myriad ways employers can support an aging workforce:
- Strengthen core benefits: An aging workforce is an opportunity to enhance fully paid health, dental, and vision plans paired with a health savings account (HSA). Employers should educate retirement-age employees about the specific value these benefits provide. HSAs, for example, allow retirees to cover premiums and medical expenses, even if they’re on Medicare.
- Educate older workers on Social Security and Medicare: Your workforce doesn’t know what it doesn’t know. Many retirement-age workers are confused by critical retirement benefits such as Social Security and Medicare. Offering comprehensive education on these programs and how they work can help ease the transition to retirement. It may also entice older workers to transition off your benefits program earlier, resulting in cost savings for your organization.
- Rethink post-retirement work opportunities: Many workers can’t afford to retire fully. Employers can help by offering job-sharing or part-time work opportunities, or phased retirement programs and other flexible work arrangements. Making roles part-time removes retirement-age employees from full-time benefits. These programs also retain institutional knowledge and experience, providing continuity and improving productivity.
Supporting an aging workforce benefits employees, your organization, and the overall economy. It requires a multi-pronged approach that includes financial wellness, targeted retirement planning education, and innovative post-retirement work arrangements. Embracing an aging workforce can help you facilitate easier transitions to retirement while retaining experienced talent and creating opportunities for younger workers to learn and move up the ranks.
