Baby boomers are approaching retirement age, but concerns are high among many employees about being financially ready to retire. This is causing some to decide that they want or even need to keep working. Many organizations are using this as an opportunity to re-think traditional retirements by transitioning older workers from the “structured work” environment to a more “flexible and relaxed” work environment.
Many employees are not ready to retire completely but would rather ease into retirement. This can help organizations who might be facing skill shortages and extends the time frame to transfer the valuable knowledge and plan for succession.
Employees can also win in this scenario by being allowed to extend their productive work lives, and lessen the long hours, stress, and potential financial concerns. Transitional retirement can take many different forms. Flexible work arrangements, shortened work days, compressed work weeks, and working from home are all ways to implement and facilitate cost effective transitional retirement.
Along with retirement extensions are changes in group benefits. Many traditional programs have benefits automatically terminating at age 65 and do not offer Retiree Benefits. It is becoming more and more common to challenge this policy, and the insurance industry may slowly start implement revisions that extend benefits beyond age 65.
As the workforce ages and changes, the landscape of organizations and their benefits programs follow. To help you navigate these changes and to keep on top of new developments, reach out to your PEO Canada Health and Wellness contact.
Dawne Helischauer / Sr. Benefits Specialist / PEO Canada