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According to the US Bureau of Labor Statistics, Americans aged 65 and over are working more and staying in the workforce for longer. This is a pattern whose weight is felt even more sharply because younger generations are entering the workforce later in life. By the mid-2020s, 36% of Americans aged 65 to 69 are predicted to be gainfully employed — a figure that was just 22% in 1994.
But why are Americans staying at work for longer, even many years after they meet eligibility for retirement benefits (at age 62)? The answer isn’t so straightforward. On the one hand, Americans are living longer and remaining healthier than their historical counterparts. Many workers remain physically active, mentally engaged, and don’t wish to leave a work environment that brings them stability, purpose, and a source of income. Contrary to popular belief, retirement doesn’t mean not working: 29% of retirees report working during retirement.
On the other hand, costs of living have increased drastically in the last few decades. Rising health costs, property prices, and elevated food and entertainment costs mean that Americans simply need more money to retire comfortably. This is especially the case when pay stagnates or is negatively affected by recession or inflation. The facts are simple: Americans are working harder and harder, and have less to show for it. Employee benefits solutions and loans that help them with expenses and maximise their 401K and retirement savings — like the ones TrueConnect has specialized in for years — can be the lifeline they need for a comfortable and quick retirement.
Whatever the reason, companies need to realize that their workforce is under financial duress and will likely remain in the workplace past retirement age. This isn’t a negative thing, however: established employees hold a wealth of institutional knowledge regarding company policy or the day-to-day running of the business. They also have proven track records of work and long-forged relationships with key clients. Letting these assets slip away would be a mistake, and so businesses need to carefully consider employee benefits solutions that address the needs of their older employees.
And so, here are several ways to ease the burden on your employees and accommodate their long-term work needs:
- Create flexibility in the work schedule with policies that allow employees to work from home.
- Allow greater opportunities to telecommute: digital communication can lessen the need to be on-site.
- Introduce part-time or flexi-time work to suit your employee health and living circumstances.
- Create contractor or consultant roles that lessen the burden of work while still drawing on their expertise and experience.
- Introduce employee benefits solutions that accommodate wellness, self-care, pension funds, and retirement benefits. TrueConnect offers simple-to-administer, ethically sourced and highly regulated loans to stretch those savings and meet the high costs of living.
Companies need to start thinking about their future — and the future of their employees. After all, you’re both in it for the long haul. If you would like more information about picking an employee benefits solution to keep up with changing workforce trends and later retirement, TrueConnect can help. Visit our website to learn about the best employee loans and financial support services for your future needs.