Driven by a variety of factors, including improved health, shifting attitudes about retirement, and financial necessity, the number of employees aged 65 and older continues to steadily increase. Wise employers are tuning into the trend, paying more attention to how to retain and support older workers, and helping to pave the path to a secure retirement.
Thinking About 2030?
With 2030 only five years away, it’s smart for business owners to pause and think into the older worker trend: the Bureau of Labor Statistics reports that “one-third of individuals ages 65 to 74 expect to be working in 2030, and the greatest growth in our labor force will come from workers aged 75 and over.” For perspective on this emerging dynamic, the Pew Research Center reports: “Roughly one-in-five Americans ages 65 and older (19%) were employed in 2023 – nearly double the share of those who were working 35 years ago….They’re working more hours, on average, than in previous decades. Today, 62% of older workers are working full time, compared with 47% in 1987.”
While some older employees choose to keep going out of a desire to remain connected to purpose and colleagues, others continue working out of financial worry or even necessity. Regardless of why more people are working later into their lives, it’s a good idea for employers to take competition for the time and talent of experienced employees seriously, since census trends indicate that by the middle of the 2030s, we will have more older Americans than younger—-for the first time in history. Business owners ready to lean in to the unique needs of older workers will find it helpful to offer: financial education programming and services, phased retirement options, simplified retirement processes, and, opportunities for ongoing learning and engagement. Toward implementing these strategies, specific suggestions from Plan Sponsor Outlook, a publication of PB&H Benefits include:
Retirement planning workshops. Offer educational sessions to help employees understand their retirement benefits, including Social Security, Medicare and their pension or 401(k) plans.
Access to financial advisors. Provide access to professional financial advisors who can help employees navigate retirement options and create tailored plans…..
Continuous learning opportunities. Provide access to lifelong learning or training programs, which can help retirees stay mentally sharp or develop new skills…..
Flexible work schedules. Allow employees to reduce their hours or transition to part-time work while earning benefits.
Clear communication. Ensure that retirement benefits,procedures and deadlines are clearly communicated,making the process easier for employees to navigate….
Alumni connection opportunities. Create opportunities for retirees to stay connected with the organization. This connection can foster a sense of community and encourage them to serve as mentors or part-time-consultants.
In Real Time: Un-Retiring?
While gearing up for a future of work that involves more older employees, keep in mind that shift is happening in real time too: un-retiring is becoming a real trend. Shanna Milford, at IRIS Software Group explains: “For the 13% of retirees planning to re-enter the workforce in 2025, financial pressures like rising living costs (69%) and non-medical debt (34%) are key drivers. Beyond financial stability, returning to work offers retirees social benefits, a renewed sense of purpose and opportunities to slow down without throwing in the towel.” Indeed, for those able to achieve a sense of agency and connection through their jobs, a retirement defined by “not working” is no longer the paramount objective. For example, a recent “Retirement Happiness Study,” by Mass Mutual found that the new meaning of retirement is “either (1) changing focus to ‘a new type of work or fulfilling purpose’ or (2) working less.”
Sponsoring A Retirement Plan?
Good work! Keep going! Pointing out that employer sponsored retirement plans are more critical for workers than ever, retirement industry leaders are advising employers that older workers especially need financial education, tailored benefit options, and opportunities to make catch-up contributions. Of course it’s also wise for plan sponsors to secure their own futures. Indeed, plans are under heightened scrutiny, and ERISA litigation has continued to rise. Protection is essential, and at Colonial Surety Company, a whole year of Fiduciary Liability Insurance for plan sponsors costs less than a few dollars a day.
To further shield the business and retirement plan, Cyber Liability Insurance is included at no extra cost. Armed with Colonial’s liability insurance package, if you face claims of alleged or actual breaches of duty in connection with the employee retirement plan, you’ll be protected with defense costs and penalty limits up to $1,000,000.
Colonial Surety offers a simple and affordable way to obtain this protection for yourself and your business: just upgrade your ERISA bond to include Fiduciary and Cyber Liability insurance. You can even choose a 1, 2, or 3-year package.If you already have an ERISA bond package with Colonial, lock in your rates by upgrading to the 2 or 3 year complete package.
Protect yourself, your business and your plan for the go forward:
ERISA Bond+Fiduciary+Cyber Liability HERE
Providing customers with knowledgeable and friendly service since 1930, Colonial Surety Company is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed and in business all across the country.