By the middle of the twenty-first century, one in every six people worldwide will be over the age of sixty-five. In the United States, the Social Security Administration program will most likely be unable to pay full benefits beginning in 2034. These demographic and financial pressures are frequently cited as the underlying causes of a potential retirement crisis.
However, there is another issue that is rarely discussed. Too many organizations still believe that careers end at 65 and see older employees as liabilities. In reality, longevity entails extending careers for decades. Some countries have already started to make changes in response to this fact. The Netherlands, for example, directly correlates retirement age with life expectancy, reflecting current demographic realities and resetting expectations for both citizens and employers.
For decades, 65 has been regarded as the ideal retirement age. However, the retirement age was never intended for today’s world. It first appeared in nineteenth-century Europe, when turning 70 was still considered unusual. As more people live into their 70s, 80s, and 90s and thrive, the framework becomes increasingly inaccurate. People are living longer and healthier lives, and the retirement model needs to evolve to keep up.
From Retirement Crisis to Retention Opportunities
The retirement age debate usually comes to a halt at the point of system strain. Another story is hidden in plain sight: older workers are staying in the workforce at unprecedented rates.
According to a survey*, 51% of adults approaching retirement intend to work indefinitely. According to the same report, the proportion of Americans aged 65 and up in the workforce increased by 33% between 2015 and 2024, while the labor force as a whole grew by less than 9%. According to Gusto’s 2025 labor report, the proportion of small business employees aged 65 and up has grown by 50% since 2019.
The drivers are financial—increasing healthcare costs, disappearing pensions, changing Social Security rules—but they are also very personal. A sense of purpose, mental stimulation, and social connection are important reasons for many older workers to stay in their jobs.
This presents an opportunity for organizations to reap retention dividends by providing experience, judgment, and cultural stability over time. Workers who have been through multiple business cycles provide perspectives and mentorship that younger teams cannot match. CEOs can use flexible arrangements, phased retirement, or hybrid roles to capitalize on decades of experience and loyalty that would otherwise go untapped.
The New Social Contract for Retirement
For much of the twentieth century, the deal was simple: work 40 years, retire at 65, and receive a pension. That model has begun to deteriorate, though, as careers now last six or seven decades, pensions are scarce, and Social Security is under pressure. Older employees are transitioning to more flexible roles, project-based work, and new career paths, rather than retiring abruptly. Many people value relevance, stimulation, and purpose above money.
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Source: Forbes