The idea of retirement needs a reinvention in the workplace.
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For decades, 65 has been treated as the finish line of work. But that age marker signaling retirement was never designed for today’s world. It originated in 19th-century Europe, when reaching the age of 70 was still a statistical rarity. Today, with people regularly living into their 70s, 80s, and 90s and thriving, the framework is becoming obsolete.
BlackRock CEO Larry Fink underscored this in his 2024 annual letter to investors. He noted that if people are living longer and healthier lives, then the model of retirement must evolve in tandem with them. The old assumptions no longer fit.
The Retirement Crisis Framed Wrong
By mid-century, one in six people globally will be over the age of 65, according to Fink’s letter. In the U.S., there’s a high probability that the Social Security Administration program will be unable to pay full benefits by 2034. These demographic and financial pressures are often described as the core of a looming retirement crisis.
But there’s another issue that isn’t readily discussed. Too many organizations still assume careers wind down at 65 and treat older employees as liabilities. In reality, longevity is extending careers by decades. Some countries are already adapting. The Netherlands, for instance, links its retirement age directly to life expectancy, acknowledging the current demographic reality and resetting expectations for both citizens and employers.
From Retirement Crisis To Retention Opportunity
The conversation typically comes to a halt at the point of system strain. However, another story is hiding in plain sight: older employees are staying in the workforce at record levels.
A 2025 Newsweek survey found that 51% of adults nearing retirement age now expect to work indefinitely. That same report showed the share of Americans 65 and older in the workforce grew by 33% from 2015 to 2024, compared to less than 9% growth in the labor force overall. Among small businesses, the share of employees aged 65 and above has increased by 50% since 2019, according to Gusto’s 2025 labor report.
The drivers are financial—rising healthcare costs, disappearing pensions, shifting Social Security rules—but also deeply human. Many older workers mention purpose, mental stimulation, and social connection as reasons for staying employed.
For organizations, this is a potential opportunity and can serve as a dividend for retention: experience, judgment, and cultural stability that compound over time. Workers who’ve weathered multiple business cycles bring perspectives and mentorship that younger teams can’t replicate. With flexible arrangements, phased retirement, or hybrid roles, CEOs can leverage decades of knowledge and loyalty that might otherwise be lost.
The New Social Contract On Retirement
For much of the 20th century, the deal was straightforward: work 40 years, retire at 65, and rely on a pension. That contract has dissolved as careers now stretch six or seven decades, pensions are rare, and Social Security is under strain. Retirement is shifting from a hard stop to a glide path.
Instead of abrupt exits, older employees are transitioning into flexible roles, project-based work, and different career arcs. For many, it is less about a paycheck than about relevance, stimulation, and purpose. Forward-thinking companies will design new principles and compacts that include:
Lifelong learning to keep skills sharp across decades.Healthspan-focused benefits to sustain cognitive, emotional, and physical vitality.Flexible structures, ranging from part-time executive roles to formal mentorship tracks.
Longevity has already created a new class of late-career professionals. Companies that design and optimize for them will hold a distinct competitive advantage.
Redefining Retirement As A Strategic Advantage
Longevity is no longer a future variable; it is a present reality. The real question for leaders is whether they will treat it as a cost to contain or as capital to deploy. That requires a shift in both mindset and structure. CEOs and organizational leaders must:
Retain older talent with dignity and purpose.Build multi-generational teams where wisdom meets and meshes with innovation.Invest in healthspan so extended careers are not only longer, but sharper and more productive.
The retirement age of 65 may have been fitting for a different century, but today it is a relic of the past. What was once described as an impending retirement crisis can, in the hands of forward-thinking leaders, become a source of resilience and a unique competitive advantage.