‘Unretirement’: What is it, and how can employers benefit from it?

“Unretirement” is a workplace trend that can help mitigate skills shortages and bolster teams. All it requires to implement is a little open-mindedness.

Helping employers to understand this concept is Julianne Parkinson, chief executive at the Global Centre of Modern Ageing (GCMA). She believes that organisations that utilise it can see massive benefits.

“Unretirement has evolved from a growing trend into a global phenomenon, redefining the conventional notions of retirement. Many Australians are opting to unretire and re-enter the workforce, driven by diverse personal and financial motivations, as well as from governments to address workforce shortages and our ageing population. As this pattern becomes more widespread, its implications for the Australian workforce and economy merit closer attention,” said Ms Parkinson.

“In Australia, the concept of ‘unretiring’ has taken root as older workers increasingly re-enter the workforce. Bolstered by the pandemic’s impact, this shift is increasingly about economic necessity and managing longevity risk. Unretiring is also testament to the value and adaptability of older Australians in a changing job landscape, with factors such as enhanced job flexibility, and a vast demand for seasoned talent playing pivotal roles.”

This trend is timely, as International Day of Older Persons lands on 1 October, making it no better time to begin investing in older workers.

Older workers are keen to take these opportunities up. In fact, research shows that 40 per cent of those who entered the labour force over the last years are aged 55 or over. There is also the rising cost of living, which is making day-to-day life all the more difficult for people to stay financially stable.

Ms Parkinson listed some of the motivations of older people looking to unretire:

• Financial necessities, such as cost-of-living pressures and insufficient retirement savings (managing longevity risk).
• Overcoming boredom and seeking a structured routine.
• Seeking a renewed sense of fulfilment and purpose.
• Changes in the pension age and superannuation policies.
• The flexibility offered by modern work environments, including remote work.

Employers can help to plug skills gaps and spark economic growth by investing in these underutilised workers. Some of the major benefits they can bring an organisation, as listed by Ms Parkinson, are:

• Harnessing experienced talent: Older workers possess invaluable skills and experience, which can be leveraged for organisational benefit.
• Offer flexibility: “Promoting flexible work as ‘business as usual’ for employees of all ages can also help to avoid stigma connected to ageing,” said Dr Kay Patterson, age discrimination commissioner.
• Reverse mentoring: Older workers can both mentor and learn from younger counterparts, fostering mutual growth and bridging generational divides.
• Creating an inclusive workplace: It’s imperative for employers to tackle ageism in the workplace and ensure inclusivity and respect for all workers.
• Talent: Older workers represent a rich reservoir of untapped talent. They can significantly enhance the human capital of an organisation.
• Knowledge retention and transfer: Older employees can pass on critical skills to younger colleagues, ensuring continuity and growth.
• Combating workplace discrimination: By hiring older workers, companies can actively combat ageism and foster an age-inclusive, diversified, and collaborative work environment.
• Future trend: Embracing the trend of unretirement positions businesses as forward-thinking, attractive employers.
• Future-proofing: Intergenerational inclusivity is the key to designing organisations that are well-suited for future challenges and opportunities.

Furthermore, there are economic benefits to be had by investing in older workers. Unretirees can contribute to economic growth, fill gaps in the labour market, and strengthen the pension system through continued contributions.

For employers who want to make the change and begin catering for older workers, there are a few things to consider. The Intergenerational Report 2023 outlined: “Employers can make themselves more attractive to older workers by being more flexible about when and where they work, and providing training and development to ensure skill sets remain up to date. This will help realise the potential older workers have to offer.”