Seniors Seek Flexible Retirement Options from Employers

Older employees in general have a lot to offer most employers. For example, they can provide emotional maturity, institutional memory, client and vendor contacts, and the ability to mentor others.

According to a survey by the AEGON Center for Retirement Studies and the Transamerica Center for Retirement Studies, older workers tend to be more loyal to their employers. The survey entitled "The New Flexible Retirement" shows that only 17% of older workers say they'll be looking for a new job in the next year, compared to 37% of workers between ages 25 and 34.

What Do They Want?

Two out of three survey participants said they want the option of a gradual and flexible transition into retirement, rather than being compelled to quit the workforce cold turkey.

"A flexible retirement, which offers workers the ability to pursue their own personalized transition, can create opportunities to work longer, continue earning income, and stay active and involved in society," said Catherine Collinson, president of the Transamerica Center. "Moreover, a new flexible retirement can create a win-win situation by serving as a powerful tool to help solve … Social Security, and employer-related retirement issues resulting from an aging population."

But the study's authors also found that only a fraction of U.S. employers were offering anything of the kind. Half of the over-age-55 workers surveyed reported that when it comes to providing older employees with reliable retirement transition information and support, most companies have been dropping the ball.

What Should Employers Do?

To close the significant gap between employee expectation and employer reality, the Aegon and Transamerica centers make the following recommendations:

• Employers should consider beefing up opportunities for older employees when it comes to keeping skill sets current. For example, if you are offering assistance or support when it comes to technical certifications, degree programs, job skill training opportunities, retreats and the like, make them as available to older employees as you do to the younger ones.

Yes, younger employees have a longer time left in the work force. But older workers don't generally change jobs as often, so they are likely to devote more years to your company than their younger counterparts. You may well get more return on investment by supporting these programs for older workers than you do for younger ones.

• Expand job-sharing, part-time and flextime opportunities within the company. These are ideal off-ramps for older employees transitioning into retirement. They get the benefit of shorter work hours, and can transition to less demanding positions.

At the same time, you still retain their priceless institutional and industry knowledge and the important leadership benefits of the older population. As they transition out, you'll be gradually opening up new opportunities and career paths for younger workers, who will still experience the benefits of mentorship and guidance from the seasoned employees working part-time.

For additional information on retaining older workers and leveraging the benefits they offer, take a closer look at the survey referenced in this article, "The New Flexible Retirement." You'll find it online at: www.transamericainstitute.org