Abstract
A powerful megatrend is quietly reshaping the future of work: the age-friendly imperative. The U.S. workforce is growing older, which has major implications for employers and for the business practices and benefit offerings needed to attract and retain employees. Employers can also tap into the power of the multigenerational workforce—including older workers—by ensuring they address the needs of employees of all ages. This article outlines the seven key elements of age-friendliness and evaluates how business practices and benefit offerings measure up.
Key Words
Workforce, employment, inclusion and diversity, life phases, caregivers, retirement, future of work
Artificial intelligence (AI) and robotics are radically transforming the workforce as employers seek to enhance innovation, productivity, and customer service. Yet there is another powerful megatrend quietly reshaping the future of work: the age-friendly imperative.
The U.S. workforce is rapidly aging. Almost one quarter of the workforce was age 55-plus in 2024, and workers age 65-plus will be the fastest growing segment of the workforce from 2024 to 2034 (U.S. Bureau of Labor Statistics, 2025). This has profound implications and offers opportunities for employers in terms of how they attract and retain employees.
As labor force shortages loom large, older workers who are ready, willing, and able to work represent untapped potential for employers who have not yet recognized the opportunity. But the story does not end here: Employers who are not yet age-friendly are depriving themselves of the power of the multigenerational workforce and its unprecedented diversity in terms of education, skills and expertise, and life experience.
In this article, I identify the seven key elements of age-friendliness and evaluate how employers’ business practices and benefit offerings measure up. My evaluation draws on findings from Employers, Workers, and the New World of Work (Collinson & Cho, 2026), a study by the Transamerica Institute, the organization that I lead. It is based on findings on a survey of 1,900 for-profit employers.
Employers who are not yet age-friendly are depriving themselves of the power of the multigenerational workforce and its unprecedented diversity in terms of education, skills and expertise, and life experience.
First: Embracing age-friendliness
Data show 89% of employers believe they are “age friendly” because they offer opportunities, work arrangements, and the training and tools needed for employees of all ages to be successful. But it is too soon to declare victory. Only 72% of workers say the same about their employers.
To evaluate their actual level of age-friendliness, employers can start by assessing their workforce to identify potential age-related imbalances with regards to job applications, interviews, hiring, growth and development opportunities, promotions, and employee satisfaction. From there, if they find any issues, they can prioritize which to address and how to proceed.
Second: Attracting and retaining employees
Almost half of employers (49%) cite employee recruitment and retention as a top workforce management priority, but some overlook older workers in their recruiting efforts. Among those who recruited new employees last year, the good news is that more than 6 in 10 employers (64%) gave either a great deal or quite a bit of consideration to job applicants age 50 and older—but the other employers missed out.
When asked at what age a candidate is “too old” to hire, most employers (63%) say it depends on the person. Among employers that stated an age, the median was age 65, which aligns with traditional retirement age but falls short of age 67 when most workers are eligible to receive their full Social Security benefits. What are your organization’s views? Are they age friendly?
Third: Emphasizing professional development
Eighty-six percent of employers feel responsible for helping their employees keep their skills up to date, a sense of responsibility that is especially critical amid the widespread implementation of advanced technologies in the workplace. Almost 3 in 4 employers (73%) indicate that AI will have implications for their workforce including job transformations, creation, and/or elimination. Yet the survey findings reveal a disconnect: Only 59% of employers emphasize professional growth and development among employees of all ages, including those age 50 and older. What’s more, only 44% have job training and 32% have professional development programs to promote lifelong learning and foster a multigenerational workforce.
Fourth: Offering alternative work arrangements
The COVID-19 pandemic spotlighted the success of alternative work arrangements, but that light is now dimming. Age-friendly employers recognize that flexibility can maximize productivity and engender employee loyalty. Employees of all ages need this flexibility whether they are starting a family, going back to school, or serving as caregivers for aging loved ones. Flexibility can be a compelling proposition when recruiting new employees, and inflexibility could be a deciding factor for existing employees who choose to leave.
Ninety-five percent of employers believe they are helpful in supporting their employees to achieve work-life balance. Yet comparatively few employers offer alternative work arrangements that can facilitate work–life balance such as flexible work schedules (54%), the ability to adjust work hours as needed (49%), hybrid work arrangements (37%), the ability to work exclusively remotely (31%), and the ability to switch from full-time work to part-time work and vice versa (31%). Thirty-five percent of employers allow employees to take an unpaid leave of absence and 32% offer employees the ability to take paid family leave of absence.
Employees of all ages need this flexibility whether they are starting a family, going back to school, or serving as caregivers for aging loved ones.
Fifth: Supporting caregiving employees
As the Baby Boomer generation grows older and the cost of long-term care skyrockets, employees are being called upon to serve as caregivers for their loved ones—and they need support from their employers and colleagues.
Ninety-three percent of employers feel they are supportive of their caregiving employees who are balancing their job responsibilities with providing care for an aging parent or loved one. When asked about their company’s programs to support caregiving employees, the most frequently cited programs include unpaid leave of absence (36%), paid leave of absence (35%), online resources and/or tools (22%), a benefit that offers discounts or subsidies for backup care (22%), and training for managers to learn how to handle situations with caregiving employees (20%).
By supporting caregiving employees, age-friendly employers are acknowledging them in their time of need, helping them maintain productivity, and creating goodwill among all employees. At one time or another, everyone will find themselves as a caregiver—or in a situation in which they need care.
Sixth: Offering pathways to retirement
Today’s workers want to extend their working lives with a flexible transition into retirement. Employers are starting to recognize this phenomenon. Almost 4 in 10 employers (39%) have a formal phased retirement program with specific provisions and requirements for employees who want to transition into retirement, and 26% of employers plan to implement one in the future.
Moreover, whether they have a formal phased retirement program or not, many employers have work-related programs to help employees transition, such as accommodating flexible work schedules and arrangements (43%), enabling employees to reduce hours and shift from full-time to part-time (37%), and enabling employees to take on jobs which are less stressful or demanding (32%). But employers are overlooking an opportunity that could potentially make these transitions easier for themselves: Only 32% encourage their employees to participate in succession planning, training, and mentoring.
Although it may seem counterintuitive, a phased retirement program can be an effective employee retention tool. Without it, employees who are seeking to transition may simply choose to leave—and their employers risk losing the ability to engage their services during the transition.
As the Baby Boomer generation grows older and the cost of long-term care skyrockets, employees are being called upon to serve as caregivers for their loved ones—and they need support from their employers and colleagues.
Seventh: Promoting health and financial well-being
Employers play a vital societal role by providing health and welfare benefits to promote their employees’ health and financial well-being. These benefits can be an influential lever in employers’ endeavors to attract and retain talent.
Employers offer a variety of benefits ranging from retirement benefits (70%) and health insurance (58%) to life insurance (36%), workplace wellness programs (27%), employee assistance programs (27%), financial wellness programs (26%), long-term disability insurance (26%), and more. It is important to note that these benefits are more likely to be offered by larger employers than smaller ones. For example, almost all employers with 100 or more employees offer retirement benefits (98%), but only 63% of employers with fewer than 100 employees do so.
In addition to offering such benefits, age-friendly employers should ensure they are well-communicated to their employees with targeted messaging tailored across life phases and age ranges. For example, family formation benefits may be of greater interest to younger employees whereas benefits that support mid-life health needs may be of greater relevance to older employees.
Looking forward
Employers are well on their way to becoming age friendly, but they can do much more. The first step is to assess your organization’s culture, business practices, and benefit offerings through an age-friendly lens, then and focus on the areas in which you wish to create a competitive advantage and lasting win-win solutions for your organization and your employees. For those employers not pursuing age-friendliness, it is critical to understand the potential risks and consequences to your organizations as the population ages and the future of work evolves.
Catherine Collinson, MBA, is founding CEO and president of nonprofit Transamerica Institute. She is based in Los Angeles, California. Visit www.transamericainstitute.org.
Photo by Shutterstock/Robert Kneschke
References
Collinson, C., & Cho, H. (2026, May). Employers, workers, and the new world of work. Transamerica Institute. Retrieved May 14, 2026, from https://www.transamericainstitute.org/research/publications/details/world-of-work-employers-workers-2026
U.S. Bureau of Labor Statistics. (2025, August 28) Employment Projections: Civilian labor force by age, sex, race, and ethnicity. Department of Labor. Retrieved May 26, 2026 from https://www.bls.gov/emp/tables/civilian-labor-force-summary.htm
