By the middle of the twenty-first century, one in every six people will be 65 or older. Furthermore, it is likely that by 2034, the Social Security Administration program in the United States will be unable to provide complete benefits. These demographic and financial pressures could spark a retirement crisis.
However, there is another issue that is not widely discussed. Many businesses continue to view older workers as liabilities, believing that careers typically end at the age of 65. In reality, though, longevity is extending careers for decades. For this reason, some countries have already begun to make changes. In the Netherlands, for example, they now have a direct correlation between retirement age and lifespan.
For many years, 65 was considered the ideal retirement age. But that retirement age was never intended for the modern world. It began in Europe in the nineteenth century, when it was unusual to live to be 70. People today are living into their 70s, 80s, and 90s, so the framework is becoming increasingly outdated. The retirement model must evolve to keep up with people living longer and in better health.
From Retirement Crisis to Retention Opportunities
The discussion of retirement age usually stops at the system being under strain. Another story that goes unnoticed, however, is that older workers are still working, and at record levels.
According to a survey*, 51% of adults approaching retirement plan to continue working indefinitely. The same report shows that between 2015 and 2024, the proportion of Americans 65 and older in the labor force increased by 33%, while the overall labor force increased by less than 9%. According to Gusto’s 2025 labor report, the percentage of small business workers aged 65 and older has increased by 50% since 2019.
The factors are not only primarily financial (increasing medical costs, disappearing pensions, and shifting Social Security regulations), but they are also deeply human. Purpose, mental stimulation, and social connection are among the primary reasons given by older workers for continuing to work.
By providing experience, judgment, and cultural stability over time, organizations have a potential opportunity that could pay off in terms of retention. Employees who have been through multiple business cycles can provide insights and guidance that younger teams cannot match. CEOs can leverage 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
For the majority of the twentieth century, the agreement was straightforward. Work 40 years, retire at 65, and receive a pension. However, careers can now last six or seven decades. Pensions are limited. And, as mentioned before, Social Security is in jeopardy. For these reasons, that old retirement model is deteriorating. Instead of retiring at a certain age, older workers are transitioning into more flexible roles, project-based work, and alternative career paths. Many people prioritize relevance, stimulation, and purpose over financial gain.
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Source: Forbes