Australia has one of the highest life expectancies in the world1, and it’s expected to increase. Many of us are faced with the reality of working longer to have enough savings to live comfortably in retirement.
So how can employers and employees best manage the later years of working life?
AMP and the National Centre for Social and Economic Modelling (NATSEM) consider Australia’s ageing workforce in the recent report Going the distance: Working longer, living healthier. The report suggests that retirement be a transition phase with reduced levels of work to focus on health and wellbeing.
The workplace of the future
As an employer, you can help your employees make this transition and achieve their retirement goals.
Research shows there is a need for Australian business leaders to become more strategic in their approach to attracting and retaining mature workers2. Older workers are an increasingly important cohort in the talent pool3 so the workplace of the future recognises their needs and allows them to enter the ‘golden years’ in a phased and measured way.
Many workplaces are responding to the challenge of an ageing workforce by offering new ways of working, including:
- flexible hours such as working part time or from home, compressed working weeks or job sharing
- flexible leave and salary arrangements
- reallocating tasks that are too physically demanding or unsuitable for older employees
- creating mentoring and training initiatives, so older workers can pass their knowledge onto younger generations.
Here’s a video of Pfizer, a global biopharmaceutical company considered an age-smart employer.
Benefits for employers
There’s a strong business case for different generations working productively and profitably side-by-side. Dr Ruth Finklestein, Director of the International Longevity Centre (USA) highlighted this at the recent AMP Amplify Festival.
‘Bottom line’ benefits4 of retaining older workers include:
- high retention rates
- low rates of absenteeism
- decreased recruitment costs
- workplace mentoring
- knowledge and experience.
How we can help
At AMP, we can support your employees and their changing needs as they face working longer.
We can help your employees start planning for the retirement they want, so they’re financially and emotionally prepared for when they stop working – such as setting up a retirement plan or creating a transition to retirement strategy.
If you’d like to know more, you can:
1 Australian Bureau of Statistics, http://www.abs.gov.au/ausstats/abs@.nsf/lookup/3302.0Media%20Release12012
2 Chandler Macleod, https://www.chandlermacleod.com/media/chandler-macleod-2013/files%20for%20content%20copying/005315-desktop-cm1278_05_13_whitepaper_coming_of_age_lr.pdf
3 Australian Institute of Management, http://www.aimqld.com.au/downloads/AIM-Engaging-retaining-older-workers.pdf
4 Government of South Australia, https://www.safework.sa.gov.au/uploaded_files/age_friendly_workplaces.pdf