Working Past 65: How Employers and Employees Are Redefining Retirement

Nearly half of workers do not anticipate retiring at 65, reflecting a growing desire for continued income, personal fulfillment, and purpose in later life

The traditional concept of retiring at age 65 is evolving, as highlighted in the April 2025 report, New Frontiers: Employers and the Evolving Workforce, by the Transamerica Institute and its Transamerica Center for Retirement Studies. This comprehensive study, based on surveys of over 1,800 U.S. employers and more than 5,400 workers, reveals a significant shift in retirement expectations and practices.

Changing Retirement Expectations

Nearly half of workers (47%) now anticipate retiring after age 65 or not retiring at all—34% expect to retire after 65, while 13% plan never to retire. This trend reflects a growing desire for continued income, personal fulfillment, and purpose in later life. Employers are responding, with 78% indicating support for employees working beyond traditional retirement age.

Working During Retirement

The concept of retirement is also transforming. A substantial 70% of employers believe that many employees plan to continue working, either full-time or part-time, after retiring. From the workers' perspective, 54% intend to do just that—17% on a full-time basis and 37% part-time. These figures underscore the growing popularity of flexible retirement paths that allow individuals to scale back without stepping away entirely.(401kspecialistmag.com)

Phased Retirement Programs

Despite the alignment in expectations, structural support for retirement transitions remains inconsistent. Only 41% of employers offer a formal phased retirement program, which allows workers to gradually reduce their hours or responsibilities. Larger organizations are more likely to provide such programs—62% of large and 60% of medium-sized companies compared to just 37% of small businesses. Many companies cite size as a limiting factor, with 64% of those not offering phased retirement stating their company is not big enough to support it.

Retirement Transition Assistance

Beyond formal programs, the broader landscape of retirement transition assistance is varied. About two-thirds (66%) of employers offer some form of support, with flexible work schedules being the most common (44%). Other offerings include opportunities for mentoring and succession planning (36%), options to reduce hours (35%), and the ability to move into less demanding roles (31%). However, very few employers provide resources for lifestyle planning or encore careers—each offered by only 27% of employers. Notably, 21% of employers offer no retirement transition support at all.

Conclusion

As the workforce continues to age, companies that foster age-inclusive environments will be better positioned for success. Offering flexible schedules, continued development opportunities, and phased retirement pathways not only helps retain experienced talent but also supports a diverse and resilient organizational culture. Age-friendliness is no longer a perk—it is a strategic necessity. Employers who embrace it will help their employees adapt, thrive, and contribute meaningfully in their later years, transforming retirement from an end into a transition.

For more detailed insights, refer to the full report: New Frontiers: Employers and the Evolving Workforce.