The aging workforce

The traditional view of retirement is changing – and it’s changing fast. As mature workers realize they either can’t afford to retire – or aren’t quite ready to make the big move, many are continuing to work past the standard retirement age. Still others are semi-retiring by shifting to part-time roles or consulting, especially in areas where the gap between supply and demand for talent is increasing. For organizations, this shift is both a blessing and a challenge.

On the plus side, changes in retirement patterns can help avoid or defer the baby-boomer brain drain that has been looming for so long. Organizations now have a fresh opportunity to address the talent gap created by a shortage of critical skills in the marketplace, as well as the experience gap created by multiple waves of downsizing over the past decade. On the minus side, shifts in retirement have the potential to increase payroll and benefits costs, and may even disrupt the talent pipeline.

While the idea of “retiring retirement” has been a point of discussion for many years, organizations are finally starting to capitalize on the opportunity as thousands of baby boomers become eligible for retirement every day.