One in six people will be over 65 by the middle of the 21st century. Additionally, it’s likely that by 2034, the Social Security Administration program in the United States will not be able to provide full benefits. These demographic and financial pressures may cause a retirement crisis.
However, there is an additional problem that is not extensively discussed. Many companies still consider older workers to be liabilities and hold the view that careers typically end at age 65. In actuality, though, longevity is prolonging careers by decades. In response to this reality, some countries have already started to implement changes. To address the current demographic reality and reset expectations for both employers and citizens, the Netherlands, for instance, directly correlates its retirement age with life expectancy.
The ideal retirement age has been considered to be 65 for many years. But that retirement age marker was never meant for the modern world. It started in Europe in the nineteenth century, when it was uncommon to live to age 70. The framework is moving further away from reality as people today thrive into their 70s, 80s, and 90s. The retirement model needs to change to keep up with people living longer and in better health.
From Retirement Crisis to Retention Opportunities
At the point of system strain, the discussion of retirement age typically stalls. The fact that older workers are continuing to work at record rates is another story that is hidden in plain sight.
51% of adults approaching retirement anticipate working indefinitely, per a survey*. According to the same report, between 2015 and 2024, the proportion of Americans 65 and older in the labor force grew by 33%, while the labor force as a whole grew by less than 9%. Gusto’s 2025 labor report states that since 2019, the percentage of small business workers 65 and older has grown by 50%.
In addition to being primarily financial (increasing medical expenses, vanishing pensions, and shifting Social Security regulations), the factors are also profoundly human. Purpose, mental stimulation, and social connection are among the main justifications given by older workers for continuing to work.
By providing experience, judgment, and cultural stability that build up over time, this offers organizations a potential opportunity that could pay off in terms of retention. Employees who have experienced several business cycles offer insights and guidance that are unmatched by younger teams. CEOs can capitalize on decades of loyalty and experience that would otherwise be lost by implementing flexible work schedules, phased retirement, or hybrid roles.
The New Social Contract for Retirement
The agreement was straightforward for the majority of the 20th century: work for 40 years, retire at age 65, and get a pension. Given that careers can now last six or seven decades, pensions are limited, and Social Security is struggling, that contract has started to fall apart. Older workers are transitioning into more flexible roles, project-based work, and alternative career paths, rather than retirement age being a hard stop. Relevance, stimulation, and purpose are more important to many people than financial gain.
Is Retiring Early Important To You?
If you don’t want to (or are unable to) work past the age of 65, you’re most likely searching for options that will provide you with the financial stability required to retire early. Contact us if you’re interested in the possibility of a guaranteed lifetime income (backed by the claims-paying ability of the carrier). You might have never thought of some retirement choices that could help you save enough money to be prepared for retirement when the time comes. Get in touch with us to learn more.
Source: Forbes