The first is psychological, as their identity is closely tied to work. The second is tied to financial wellness, as they need to work due to the economic impact of the 2008 financial crisis.
In order to remain in the workforce and productive as they age, many Boomers are making their own modifications to how they work. It makes sense for employers to help them in their efforts because as Boomers stay in the workforce longer, they are at greater risk of experiencing short- and long-term disabilities, and may bridge their retirement with a disability, which could result in considerable costs for employers. Disability costs employers 8 percent to 15 percent of payroll to date, and those costs are only expected to rise as the population continues to age.
Prudential's study on productive aging details cost-effective alternatives to disability that can help bridge Baby Boomers to retirement in a more healthy manner. The company's study produced these key results:
- While aging workers experience physical and cognitive declines, many are leading the way in changing their approach to work to stay productive until retirement.
- There are cost-effective opportunities for employers to support workers who want to self-modify their approach and bridge the gap to retirement in a healthy manner.
- Workers over age 50 experience longer disability durations than their younger counterparts, so there's an opportunity for employers to manage associated disability costs of their aging employee population.
To find out more, read Prudential's complete study, "How an Aging Workforce is Helping Itself Stay Productive: What Employers Need to Know."