Every day, a rising tide of Americans reach retirement age. Yet the anticipated “Silver Tsunami” of Baby Boomer retirement is not materializing in the ways many have been imagining. Rather than taking part in an all out mass exodus, this generation is staying put longer, marking a major shift in how we approach retirement.
In many ways, the romanticized notion of a retirement filled with travel, family time, and hobbies doesn’t reflect the current reality for most Americans today. A mix of economic uncertainty, shifting values, and longer life expectancy is reshaping how many approach this phase of life.
The truth is, retirement in its most traditional form needs a serious update, especially as most organizations lack a cohesive strategy to adapt and offer support to these valuable workers throughout this big life adjustment.
Retirement Isn’t an Off Switch
Traditional assumptions about retirement are now outdated. By and large, employees don’t want to one day flip a switch from full-time work to full-time leisure. They want flexibility, purpose, and engagement. And they want it on their own terms.
The data backs this up. According to our recent State of Retirement Report, a whopping 80% of U.S. consumers are planning to work to some extent after retirement.
Their motivations range from economic concerns to a deep desire for connection and purpose. The data found that 64% of people worry about affording the lifestyle they want in retirement. The economy is uncertain, inflation is on the rise, and more Americans are taking out early withdrawals from their 401Ks. Not to mention, Americans are not feeling too optimistic about Social Security either. Our survey found that 62% plan to rely on Social Security for a portion of their retirement income, yet 42% say they are concerned that it will not exist by the time they retire. It’s no wonder those reaching the traditional retirement age are feeling concern over their finances.
But it’s deeper than just a paycheck. A strong desire for motivation and community is a major contributor to delayed retirement, even for those financially comfortable. Nearly half (41%) of US consumers are worried about feeling bored or unfulfilled in retirement. In modern times, as we live longer and our families are more dispersed than in past generations, many Americans are finding that the strongest and closest communities we have are those of our coworkers. The consistency of interaction and friendship that a stable career brings can be one of the biggest contributors to happier, healthier lives.
For many, staying professionally engaged, even in a reduced or flexible capacity, helps combat isolation and reinforces a sense of identity. These statistics represent more than personal anxieties; they reflect an untapped workforce and a way to explore retention potential. By treating retirement solely as an HR issue, you’re overlooking a critical component of a broader business strategy. If people are the most valuable asset of any organization, why do we treat their evolving needs as an afterthought?
A New Take on an Old Concept
The oldest generation of our workforce is calling for a new model. Not a “one size fits all” exit ramp, but a formalized program that recognizes retirement as a transition rather than an endpoint.
The data has shown us that if you aren’t providing a more flexible option for your employees of retirement age, they aren’t just going to retire – they’re going to leave your organization for somewhere that does. Aside from pushing loyal employees to competitors who offer more flexible models, clinging to the outdated endpoint mentality risks losing institutional knowledge overnight and leaving succession gaps. However, concepts like phased or flexible retirement – Flextirement, if you will – can combat these business risks.
This is an enterprise-wide strategic framework that enables employees to reduce hours or contribute in a part-time capacity while maintaining benefits and income for a period of time that aligns with their schedule. In other words, Flextirement directly answers the fears and hopes voiced by today’s workforce: a framework for connection, income, and control at a pivotal life stage.
This model provides both financial and emotional support to a workforce in flux and mitigates any issues with succession planning and knowledge gaps. It also creates valuable mentoring opportunities between seasoned workers and younger talent.
Flextirement As a Strategic Inflection Point
There’s a narrow window of opportunity for companies to act while most are still lagging behind. Those who modernize their approach to later-career employment will benefit not only from retention and knowledge transfer but also in employer branding, employee experience, and resilience during periods of demographic shifts.
More than we might sometimes like to admit, work is deeply tied to our identity . For most of us, reaching retirement is a real moment of redefining who we are as individuals, and the support a company offers in that transition can have a lasting impact beyond our comprehension.
For so many people, retirement is no longer a finish line – nor should it be. It should be a turning point. It should be a Flextirement. The best organizations will meet it head on with intention. Will yours?
