Employers must adopt new practices to help retain older workers.  Flexible work arrangements may appeal to older adults who no longer wish to work traditional full-time schedules, either because of additional personal obligations (such as the need to care for aging parents or spouses or to help with grandchildren), worsening health, declining physical energy or stamina, or a preference to sacrifice some income for more control over their time without giving up paid employment entirely. Some older workers with enough savings or access to pension benefits can maintain their living standards with lower earnings.  Flexible work arrangements include part time employment, flex time, job sharing, and telecommuting.  

Many workers prefer to phase into retirement gradually with their current employers instead of changing employers or moving directly from full-time work to full retirement.  However, pension policies, union regulations, Social Security guidelines, tax policies, federal regulations, internal public sector procedures, HMO regulations, and other existing conditions may limit older workers ability to remain productive in the workplace.  For example, many older employees cannot afford to reduce their work hours unless they can draw on their retirement benefits, but federal law restricts employers’ ability to pay benefits from defined benefit plans to workers who remain on their payrolls. 

21.a    The Executive Office of Elder Affairs should lead a multi-agency initiative to increase training opportunities and disseminate best practices for retention of older workers

21.b    Business and industry should develop a major initiative to promote phased retirement and flexible schedules

21.c    Employers should adopt Deferred Retirement Option Plans

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