This is the first blog in our new three-part series, “Rethinking Retirement.”
Retirement? Why are we talking about retirement in a profession focused on growth, development, and the future of work? Because talent development professionals are uniquely positioned to influence not just when and how people retire, but how they prepare to thrive in that next phase of life.
The earlier we start conversations about retirement—with ourselves and our workforce—the more equipped we are to ensure people transition with purpose, financial readiness and personal fulfillment. Retirement planning is no longer a last-chapter conversation. It’s part of lifelong development.
Here’s the thing: the traditional model of retirement is outdated. For previous generations, retirement meant reaching a certain age, collecting a pension and settling into a quiet routine. That model worked because pensions were common and life expectancies were shorter. But that’s no longer the case.
Until the 1930s, there wasn’t really such a thing as retirement. Most people worked until they physically couldn’t. The Social Security Act changed that, along with the rise of labor unions and employer-sponsored pensions. Eventually, retirement became a cultural norm—a reward for a lifetime of work.
Fast forward to today, and those supports are rapidly changing. Traditional pensions have mostly disappeared in the private sector, replaced by defined contribution plans like 401(k)s. Unfortunately, many workers are underprepared: the median 401(k) balance is under $100,000. Only about 55% of workers participate in any kind of employer-sponsored retirement plan.
As talent developers, this matters. Because when employees are financially insecure, disengaged in their final years, or unsure of how to transition out, it creates ripple effects across succession planning, workforce engagement and knowledge transfer.
Which brings us to a crucial shift: the old three-legged stool of retirement—Social Security, pensions, and savings—has a wobbly fourth leg now: working in retirement. For some, it’s a choice. For others, a necessity. Either way, it’s something organizations and individuals must plan for together.
Coming up next: We’ll explore how your mindset about retirement can shape your experience, and how reimagining the journey can help you avoid the pitfalls of purposelessness—both for yourself and your workforce.