How can you transition older workers if you can’t force them to retire?

Despite the aging nature of our workforce, many employers are unprepared, ill equipped, or unwilling to accommodate its needs. Indeed, 38 of baby boomers report that their employers do absolutely nothing to help facilitate their transition to retirement.

What steps can employers take to help facilitate the transition of aging employees out of the workplace, without committing age discrimination? Consider the following four suggestions, culled from the tips offered by the Transamerica Center for Retirement Studies):

1. Help with retirement planning. Offer a retirement plan (to include part-time workers, if feasible). Consider auto-enrolling your employees to increase participation, and escalating contribution rates to increase salary deferrals. Structure matching contributions to promote higher salary deferrals (i.e., 50 percent of the first six percent instead of 100 percent of the first three percent).


2. Educate your employees about saving and investing.  Any 401(k) provider worthy of your (and your employees’) investment will help with this task. Offer guidance and information on how to calculate a retirement savings goal and on the basic principles of saving and investing. Most importantly, ensure that your employees understand that taking loans and premature withdrawals from their retirement accounts is an absolute sin.


3. Offer benefits to enhance employees’ long-term financial security.  Consider disability insurance, life insurance, employee assistance programs, workplace wellness and financial wellness programs, long-term care, and other insurances, all of which can help protect employees’ overall financial security as they age.


4. Create employment opportunities to assist employees to phase into retirement.  Consider offering voluntary flexible work schedules and arrangements, transitions from full-time to part-time, and shifts of aging employees to work in different capacities.