A growing segment of the population is working beyond the traditional retirement age

By Jessica Tuman, VP, Voya Cares and ESG Practice COE

According to the Bureau of Labor Statistics, one-third of individuals ages 65 to 74 expect to be working in 2030, compared with 27% in 2020 and 19% in 2000. Employers must increase their knowledge about this growing segment of the workforce and understand how to meet this demographic’s unique needs. 

Other changes to the professional landscape — an overall increase in job vacancies, a decrease in productivity, and shifting attitudes towards workplace etiquette — point to the potential for the aging demographic to change the playing field for employers, especially as they are faced with a tight labor market. 

I am very proud to share Employment Extenders: A labor (force) to be reckoned with, research that describes the mindset, motivations, wants and needs of individuals who still are working past retirement age.

Voya Cares® collaborated with Easterseals — the top national nonprofit for people with disabilities that provides public education, policy and advocacy initiatives — and commissioned Edge Research to gain insight into “Employment Extenders” and provide answers to questions, such as:

• Why are aging employees working longer?
• How have changes in workplace culture impacted their views on retirement?
• Has the current economic climate influenced their mindset on when and how to retire?

This survey uncovered key findings driving the changing workplace landscape. 

1. Many say they are motivated to continue working because they either can or want to, but 92% of Employment Extenders also indicate they need or want more money for retirement.
2. Employee confidence around retirement and financial security is low. Sixty percent of Employment Extenders says they have less than $500,000 in retirement savings.
3. Market uncertainty and workplace flexibility are added factors in older employees’ decisions to work longer. 
4. Employment Extenders are not considering the associated costs and increased likelihood of long-term care support for themselves or a loved one that could derail retirement savings. 
5. What does this mean for employers? As they face a tight labor market, employers who want to retain their aging workforce must implement early guidance, educational tools and tailored benefits packages that fit Employment Extenders unique needs to successfully position them for retirement.

We urge employers to carefully consider their employees’ ambitions for retirement. Almost all the respondents indicated wanting to have enough money so that they can live without worry as their top retirement goal. In addition to supporting Employment Extenders as they continue to work, employers also must help them continue to properly prepare for retirement, when they are ready.

Voya Cares and Easterseals identified that employers have a clear opportunity to step up and provide tailored guidance for their employees’ needs to create a solid foundation for retirement, including:

• Providing awareness and education on how to leverage and maximize existing employer benefits.
• Leveraging technology to create retirement planning tools.
• Offer health and wealth benefits to meet their needs, as they continue to work in their 60s and 70s.

The collective years of valuable experience help make Employment Extenders a fundamental part of the workforce. A sharper understanding of this demographic can ultimately create a more unified workplace environment and pave a discernable retirement path for all employees.

The full research paper with expanded findings is available at easterseals.com/mediaroom and voyacares.com/aging. Added resources and a video summary are available on voyacares.com/aging.