Baby boomers are rapidly approaching “peak 65,” when the majority of baby boomers have reached traditional retirement age. This milestone presages the biggest wave of retirements in history.1 Faced with this new demographic paradigm, businesses could face acute labor shortages and loss of institutional knowledge, while Social Security and Medicare are increasingly strained. Businesses, policymakers, and society will need to adapt quickly to the resulting economic and workforce shifts. At the same time, individuals will need to consider their retirement preparedness, which is often characterized by insufficient savings, a decline in reliance on traditional pensions, and concerns about the sustainability of Social Security benefits.
The implications for this impending workforce transformation are significant. In response, businesses, policymakers, and society must rapidly adapt to the new economic and workforce reality.
This paper examines the following:
- A demographic tidal wave
- Why boomers are working longer
- The rise of “unretirement”
- Despite longer careers, the workforce is shrinking
- Labor shortages and knowledge loss
- The changing shape of work and retirement
- Why flexible and phased solutions work