The Future of Retirement - Part Two

It was a bit of a surprise when dinner last night with a group of friends provided profound insights into retirement trends. As the youngster at the table, it was energizing to hear that in one capacity or another, we’re all still working. Although I’m the only one in my original profession, others have reinvented themselves. Our table included a retired CEO, HR executive, teacher, truck driver, doctor, attorney, and salesman. They are now engaged as professional volunteers, home health care providers, flyfishing guides, artists, car service providers, and a resort concierge.

The traditional retirement of yesteryear has evolved into something more than just reaching the finish line. It’s not just about earning a paycheck but is often about having a purpose. For now, let’s look at the economic and demographic reasons for these changes.

1. U.S. life expectancy rose from 70 (1970) to ~79.4 (2025).
2. Average retirement age increased from 57 (1991) to 62–66 today.
3. Longer lives require more savings, purpose, and planning.
4. 23% of workers over 65 are self-employed vs. only 10% under 65.
5. Part-time and flexible hours are increasingly essential.
6. Physically demanding jobs often lead to earlier retirement. Example: West Virginia and California have average retirement ages of 61 and 64, where mining and agricultural jobs take a toll physically.

Last week, we had our roof and gutters cleaned by three young and industrious workers. Depending on a worker’s physical condition, it would be hard to imagine a 67-year-old attempting to do this chore. Retirement policies should consider job types and physical requirements, separating blue collar from white collar when recommending retirement ages. Knowledge-based jobs typically allow for longer careers. Sitting at a computer can be done well into an advanced age. Part-time or flexible hours are also essential for retirees seeking encore employment endeavors. Two of our dinner companions stated that they’ll need to work indefinitely due to a lack of savings. Another reason many face this unfortunate fate may be the lack of traditional pensions. This shifted the responsibility to individuals for self-funded retirement sources like IRAs and employer/employee funded 401(k) plans. Whether for purpose or paycheck, or both, 19% of Americans 65+ still work, which is double the rate in 1987, and the number of workers aged 75+ is expected to double by 2030.

Technology for Rescue

Career longevity requires relearning and retooling skill sets. For instance, the financial services industry in the 1980s used computer mainframes and punch cards to process data. AI and technology lead the way today, whether in finance or fields such as health care, or auto service and repair, which now rely on electronics and computer technology.

Ergonomic advancement in the workplace could allow seniors to work more years. This ranges from the use of industrial robotics providing exoskeletons to support physical laborers, and cobots for workers to lighten the load on aging knees, shoulders, and backs. It’s interesting to note that Denmark pioneered ergonomic safety in the workplace, while China’s investment in industrial robotics represents 51% of the world’s overall installation, leading the way in this area.

Whether you have a college degree or vocational education, remaining relevant in today’s workforce depends on continuous education, continually expanding one’s knowledge base. Training will boost compensation and job market competitiveness.

Workplace wellness

Proactive health care can reduce injuries and boost productivity. On-site health services, mental health awareness and systems to track fatigue and help prevent accidents are a priority. Flexible scheduling benefits older and younger workers alike. Having health and well-being services nearer to workplaces is an attractive benefit, too.

Shorter commutes and remote work options are valuable perks as we age. A forty-five-minute commute for a thirty-year-old could be a deal breaker for an older worker. Starting my career in New England, an hour-long drive to work, even in the winter, wasn’t a concern. Today, my five-minute trek from home to the office is quite attractive. Shorter commutes and walkable access to services and shopping will enhance community life for both young and old.

Not everyone can or will want to work indefinitely, making proactive financial planning decisions crucial as we adapt and prepare for what’s next. The times they are changing. Stay focused, plan accordingly, and join us next week for Part Three of The Future of Retirement.