Preparing for an Aging Workforce: The Shift in Retirement Age and Benefits

The Shift in Retirement Expectations

The concept of retirement is changing dramatically. Traditionally, age 65 was seen as the benchmark for retirement, but recent findings indicate that many Americans now expect to work well into their 70s. According to a recent Equitable survey, 47% of respondents foresee retiring at age 74, citing rising living expenses and the unpredictability of retirement income as major factors. This shift is indicative of a broader trend where financial realities are reshaping long-held beliefs about when and how we can afford to stop working.

Meeting the Health Benefits Needs of Older Employees

As employees increasingly expect to work longer before retiring, employers must adapt their benefits strategies to meet this new reality. This shift in retirement expectations has several implications for benefits planning.

One of the primary concerns for older employees is access to enhanced health benefits. With different health needs emerging as people age, it’s essential for employers to offer robust health insurance plans that cover chronic conditions, preventive care, and wellness initiatives. This not only helps employees manage their health effectively, but also contributes to a more productive workforce.

Moreover, the anxiety surrounding retirement savings is palpable. Many employees worry they won’t have enough saved to retire comfortably, prompting employers to prioritize retirement savings plans. By providing competitive 401(k) options with matching contributions, employers can play a crucial role in encouraging employees to prepare for their future. Additionally, offering educational resources about retirement planning empowers employees to make informed financial decisions, helping them feel more secure as they approach retirement age.

Flexibility is another key factor in supporting an aging workforce. The desire for phased retirement—where employees gradually reduce their hours or shift into consultancy roles rather than fully retiring—is on the rise. To accommodate this trend, employers can implement flexible work arrangements, including part-time positions. This flexibility allows older employees to maintain a balance between their professional responsibilities and personal commitments, making the transition to retirement smoother.

Promoting holistic wellness can significantly benefit older employees. By implementing wellness programs that encourage physical activity, mental health support, and stress management, employers foster a healthier workforce that is better equipped to work longer. As brokers guide employers through these changes, platforms like BerniePortal can streamline benefits administration, ensuring that employers have the tools to implement these essential offerings effectively.

The Role of Brokers in Retirement Planning

Brokers are uniquely positioned to assist employers in navigating the complexities of retirement planning and benefits offerings. Here’s how brokers can add value:

Tailored Benefits Solutions: Brokers can conduct needs assessments to understand the specific demographics and needs of an employer's workforce. By analyzing employee age distribution, health concerns, and retirement readiness, brokers can recommend customized benefits packages that appeal to both younger and older employees.

Education and Communication: One of the most critical roles brokers play is educating both employers and employees about available retirement benefits and options. This includes organizing workshops, webinars, and one-on-one consultations that demystify retirement planning. Brokers can help employers communicate the value of their benefits offerings effectively, ensuring that employees are aware of their options and how to take advantage of them.

Advisory Support: Brokers should position themselves as trusted advisors, providing ongoing support to employers as they navigate changes in the benefits landscape. This includes staying informed about regulatory changes, market trends, and innovative benefits solutions. By being proactive, brokers can help employers adjust their strategies to remain competitive in attracting and retaining talent.

Long-Term Partnership: Establishing a long-term relationship with clients allows brokers to stay engaged with their evolving needs. Regular check-ins and feedback sessions can help brokers identify any gaps in benefits offerings and suggest necessary adjustments, fostering a sense of partnership and mutual growth.

Navigating Compliance: Retirement planning is often accompanied by complex regulations. Brokers can assist employers in navigating these legal requirements, ensuring compliance with federal and state laws related to retirement benefits, thus mitigating potential risks. BerniePortal now offers a free compliance feature for its users—you can book a demo to learn more!

By embracing these roles, brokers can enhance their value proposition, helping employers create a benefits framework that not only addresses the immediate needs of their workforce, but also prepares for the future of retirement.

Additional Resources: 

• Brokers’ Corner Podcast—watch and subscribe to the Brokers’ Corner podcast, which dives into the topics that affect your agency and industry and identifies strategies so you can protect and grow your book of business 
• BerniePortal Brokers’ Council—a council of benefits brokers from across the country that advises BerniePortal on industry concerns, trends, and the ways technology can best support their agency and employer groups 
• BerniePortal for Brokers—leveraging technology to increase your agency valuation and support your employer groups is easier than ever with BerniePortal’s software solution, built for brokers by brokers