America’s workforce faces a significant transformation as more Americans turn 65 in 2025 than ever before. By 2032, the US is projected to experience the largest labor shortage in history due to declining birth rates. Employers can combat this by embracing phased retirement, retaining experienced workers as mentors, and preserving institutional knowledge.

Many older workers are choosing to remain in the workforce for financial reasons or to stay engaged in a job they enjoy. Phased retirement not only benefits businesses by preventing brain drain and aiding succession planning, but also helps older workers maintain vitality and reduce cognitive decline. Work can provide a sense of purpose and better mental health in retirement.

Phased retirement allows employees to gradually reduce work hours and responsibilities while contributing to their retirement savings and delaying Social Security claims. This flexibility benefits workers by allowing them to continue doing the work they love longer, while also preserving their expertise for the benefit of the organization. Many companies are now offering phased retirement options to meet the needs of both workers and employers.

Read more at Yahoo Finance: Retirement is changing. Here’s why companies need to change, too