Financial pressure and AI anxiety are pushing workers to redefine what comes after their primary career.
Retirement isn't what it used to be.
Though the Baby Boomers (my generation) are outnumbered by Gen Z workers and are exiting the workforce en masse, some of us are still holding on. And though retirement is in our sights, it may not look like we expect.
According to new data from Thrivent, 47% of current non-retirees aren't sure they'll ever be able to fully retire. More than a third expect to work after retiring from their primary career. And workers of all ages are concerned about how AI may negatively affect their retirement plans, including:
"Everyone's experience with AI is unique, and there's a significant amount of uncertainty about its long-term impacts," says Thrivent Financial Advisor Jason Rogoff. "That uncertainty may feel more acute for younger workers because they have more earning years ahead of them and more time for technological change to affect their careers.
"Their concerns likely extend beyond job security alone and could include questions about future income growth, career opportunities and how AI could reshape the nature of work over time."
With 72% of Baby Boomers delaying retirement past 65, the end of work has never seemed further away. But maybe, if we reinvent retirement, that's not such a bad thing after all.
The biggest reason so many older-gen workers don't think they'll be able to retire is, predictably, a financial one. "Financial pressures, like rising costs and economic uncertainty, are making traditional retirement feel less attainable," affirms Rogoff. "This challenge is amplified for 64% of non-retirees who say they are more focused on their current finances than retirement planning."
Many Boomers' personal economic outlook is bleak. More than half possess less than $250,000 in total assets. According to Credit Karma, more than a quarter (27%) of Americans aged 59+ have no retirement savings whatsoever. Housely projects that by 2030, most Peak 65 Boomers will struggle to maintain their current lifestyle standards in retirement.
But some people who "have" to keep working may find it's actually what they want. "For some, continuing to work is about income, but for many others it's about staying engaged, maintaining a sense of purpose and staying mentally active," says Rogoff.
"As a result, retirement is increasingly becoming a transition into a different phase of life and work rather than a fixed endpoint."
If retirement is no longer a finish line, what should replace it as the thing employees and employers are planning toward together? Rogoff believes retirement should be reframed as another stage within a broader financial and life plan, rather than the entire goal itself.
"A retirement date is an important marker, but it does not define what life may look like afterward," he says. "Individuals should consider their desired lifestyle, sources of purpose, work preferences and income needs to determine what this period should look like for them."
The employer role here is to support that planning by helping employees understand their benefits, transition options and available resources, while recognizing that success may look different from one person to the next.
And this isn't just a conversation to have with older employees. Communicating proactively with younger-gen workers about their retirement options plants the seed that this is an organization that cares about their long-term well-being.
With a third of the workforce planning to keep working in some form after their primary career, employers should be building this flexibility into their structure. "Practically, that may mean creating more flexible pathways between full-time work and retirement, rather than treating retirement as a single end date," says Rogoff.
"Employees may be preparing for full retirement, part-time work or another opportunity, so they need to understand how each path could affect their financial situation."
Every worker's situation is unique, but Rogoff says employers can help by providing clear information about benefits, health coverage and retirement options well before an employee's final weeks.
Unfortunately, this may not happen as often as it should. "While we don't know exactly how often these conversations are happening, only 12% of respondents say they used their employer or HR team for retirement-planning information in the past year," says Rogoff.
"Six in ten consider them a trustworthy source, which may represent an opportunity for more proactive communication on their benefits and transition options. Financial advisors can then help employees apply that information to their own goals, values and financial circumstances."
Rogoff says that part-time work is the most commonly anticipated arrangement among those expecting or planning to work in retirement. "Companies considering a phased-exit program may want to create a clear, consistent way for employees to gradually scale down their responsibilities," he advises. "This could include reduced schedules, project-based roles, consulting arrangements or a gradual transfer of responsibilities."
Another thing to establish now: eligibility standards and timelines. "Companies will also need to explain how participation affects compensation and benefits, and incorporate knowledge transfer and succession planning," says Rogoff.
"The goal is to make the transition predictable for both the employee and the organization, rather than treating retirement as a single departure date."
At the same time, it's important not to make assumptions about what your older workforce wants. "One misconception is that all older workers want the same support or are following the same timeline," says Rogoff. "Some may be preparing to leave their primary career completely, while others may want to reduce their hours, take on a different role or remain involved in a limited capacity.
"For leaders, the opportunity is to avoid assumptions and create space for conversations about what employees want their next chapter to look like."
The best-laid plans often go awry, and in the case of retirement, many people don't even have those. Thrivent found that 42% of respondents are unsure whether they will work for pay after leaving their primary career. "That uncertainty doesn't have to lead to paralysis," says Rogoff.
Even if you don't know if you'll be able (or want) to fully retire, you can take steps now to keep your options open. "People can prepare for multiple outcomes by continuing to save, maintaining an emergency fund and reviewing their plans regularly," says Rogoff. "Even small, consistent steps can create greater flexibility. A strong retirement plan isn't designed to predict the future, it gives you options as your work, finances and priorities evolve."
As older-gen workers look to retirement, companies should be stewarding their institutional knowledge and experience wisely. Normalizing conversations about flexible retirement is a great first step, along with providing clear information not just weeks, but years before retirement is on the table. Organizations that do this may end up retaining that valuable talent longer—creating more opportunity for older workers to pass on their knowledge to the next generations stepping into the breach.
This article was originally published on Forbes.com