During a time when retirement is no longer a definitive endpoint but a new phase of engagement, an increasing number of seniors are choosing to or must extend their careers beyond the traditional retirement age.

“Nationwide, over one in five (21%) of seniors aged 65 and over are still participating in the workforce, which is more than 11.8 million people.”

This new phase of working beyond retirement reshapes our views on aging and presents a new set of challenges and opportunities for businesses. It’s about older workers’ skills, work ethic, and experience.

Understanding this phenomenon, supporting the continued integration of older workers into the workforce, and accepting the new norm is crucial for business leaders, HR professionals, and employees.

Businesses can improve their workplaces by embracing senior employees and leveraging their wisdom, work ethic, and valuable experience. Furthermore, donating to, advocating for, and forming partnerships with agencies supporting aging helps ensure senior workers continue to make meaningful contributions while aging gracefully.

Understanding the Trend

The decision to continue working past the conventional retirement age is influenced by a blend of necessity and choice, reflecting broader economic conditions and changes in life expectancy. This phenomenon shows the evolving nature of retirement and highlights older adults’ resilience and contributions to the modern workforce.

As the trend of seniors extending their work lives grows, it’s essential to grasp the implications of this trend for businesses and society so that we can adapt effectively.

Working past the traditional retirement age is a phenomenon — a significant societal shift.

• Approximately 4.1 million Americans will reach 65 this year and every year through 2027. It represents the most critical surge of retirement-age Americans in history, an actual phenomenon we can observe and measure.
• According to the U.S. Bureau of Labor Statistics, the workforce participation rate among adults 65-74 is expected to grow from 25.8% to 30.7% by 2031.

Several situations cause this trend: the lure of continuing in a profession, the desire to stay engaged using skills and expertise, the financial necessity, or a combination of these.

• Retirement security has become less attainable, thanks to decades of stagnant wages, recessions, an intense few years of high inflation, and the disappearance of pensions.
• Around the world, as people live longer — and face future shortfalls in government retirement funds — the age at which people get full retirement benefits keeps increasing.
• Changes in the Social Security law pushed many to continue working past 65 to get their full retirement benefits.
• Technology has made some jobs in some industries physically more accessible—you can even work from home.
• People live longer and are healthier in old age.
• Some people 65 and older find their work enjoyable, purposeful, and fulfilling. They may feel passionate about their field and appreciate the structure and routine that come with work, and some may worry they would be bored if they retired altogether.

The business landscape will evolve as seniors continue to engage in the workforce beyond the traditional retirement age due to financial necessity, better health, and a changing work environment.

A Pew Research survey found that nearly a fifth of Americans aged 65 and older were employed in 2023, nearly double the previous three decades. Employees 55 and older will constitute over a quarter of the global workforce by 2031, according to an analysis from Bain & Co. last year.

This shift requires businesses to reassess and adapt their strategies to integrate and benefit from older workers’ wealth of experience.

Additionally, there is a growing opportunity for businesses to forge meaningful partnerships with agencies that support seniors. By embracing these changes and supporting these organizations, companies can unlock new potential in productivity and innovation while advocating for and contributing to the sustainability of vital community resources that help seniors thrive in their extended careers.

The Benefits to Businesses

A Final Thought with CTA

As we accept the new normal and embrace the invaluable contributions of older workers, the time has come for businesses to adjust internally and reach out and actively support the broader community that facilitates these contributions.

Local aging-in-place organizations and other senior services offer critical resources that enhance seniors’ ability to continue working and contributing to the companies they work for using their wisdom, expertise, and emotional intelligence that comes with experience.

Your business can be important in your area’s senior support network. Contact DSCC in DuPage County, Illinois, or your local aging-in-place organization today to learn how you can contribute to and benefit from their expertise.

Together, we can create a workplace and a community that genuinely values every generation.