Large employment potential still exists among pensioners

Some don’t look forward to it, while others cannot wait. What should you do if you are about to retire? Managers play a crucial role in this decision, says vitality expert Jolanda Lindenberg. After all, having a ‘good conversation’ about this well in advance is also in their interest. ‘That’s because there is still a great amount of untapped labour potential among pensioners.’

First the farewell party, and then suddenly sitting at home, staring in the void called retirement. Jolanda Lindenberg of the Leyden Academy on Vitality and Ageing, a knowledge institute on ageing and vitality, understands that it is a classic image, although fortunately it is less and less in line with everyday practice. ‘People often find such a major change very difficult,’ she says. ‘Most people prefer to ease into retirement gradually, sometimes first with a different job, or with different tasks so that the work fits better with their current phase of life.’ However, she also emphasises that as an employer, you must want to have a good conversation with your employee about this well in advance. ‘You can’t actually start a conversation like that early enough,’ she says. ‘What is important to you? How do you see the transition for you in the future? And how do we ensure that we are still a good fit?’

Working longer

It is in keeping with the current era in which not only are more and more people continuing to work longer – including even after their retirement age – but are also increasingly returning to work over time, albeit sometimes for only a few days a week. Yet Lindenberg sees that in reality this often evokes feelings of discomfort, both among employers and employees. In practice, she observes that many employers limit themselves to ‘financial preparation’. They do look at what retirement means for the respective employee’s personal financial situation, but they hardly talk about it, if at all. They should be asking things like: What are you going to do with the free time that awaits you? And what else can I do for you as an employer?

Concerns about later

‘There is often a whole world of opportunities for both sides here,’ says Lindenberg. ‘At least 3 out of 10 employees in the later stages of their careers are concerned about their retirement, according to research. A sizeable number also report feelings of anxiety. They have a more difficult time giving meaning to their lives when they stop working. And that also has an impact on their work and how they experience it.’

It is precisely for this reason that it is so important to enter into dialogue with your employee early on as a ‘good employer’, Lindenberg says. ‘On the one hand, of course, you want your people to do well. But on the other hand, it is also in your own interest to support them in this. These are people with a lot of expertise, which you want them to pass on. And with regard to the well-being of your people, it is good when they see that you care about their personal situation. In addition, more and more people want to work longer, or come back to work later, in one way or another. If you talk about this well in advance, the knife cuts both ways. I realise that there is often some discomfort involved in such a conversation. But then I wonder if it makes sense to talk about finances if you have no idea what you want to do with that money.’

The retirement age is changing

The world is changing rapidly. The same applies to the retirement age. Currently, almost 3 out of 4 employees are 65 years of age or older at retirement. This number was just 14 percent 20 years ago, and 43 percent 10 years ago. So things are indeed changing fast. This is also quite evident on the labour market. Of men aged between 65 and 75, more than 1 in 4 now work; for women this is about 1 in 8. The number of working people aged 65 and over has increased four-fold since 2003: from 75,000 to 300,000 (in 2020). Even the number of self-employed persons entitled to a pension who are registered with the chamber of commerce has more than tripled in the past 10 years (100,705 to date).

Unused work potential

Nevertheless, ABN AMRO has already ascertained that there is still a considerable amount of unused work potential among fully retired employees. According to the bank, this concerns a total of 250,000 people, who would be very welcome in today’s tight labour market. And a considerable number of them are certainly open to this, provided that certain conditions are met such as ‘job satisfaction’ and ‘setting your own working hours’, but also ‘being asked’. It is noteworthy that ‘good pay’ comes in last place for them. However, it is the employer who must take action here, the bank notes. For example, with HR policy, which can include ‘working part-time’ as an integral part, with a gradual phasing-out of work, ‘instead of the abrupt all-or-nothing retirement that is still often the norm today.’

Lindenberg’s own research as well as that of the NIDI regarding the desire to work longer is in line with this. In addition, a CBS survey shows that 73 percent of employees in the large group of current 55 to 65-year-olds may want to continue working longer than the state pension age. In other words, this amounts to more than 900,000 potential workers over the next 10 years. The most important condition is that the jobs are part-time.

Start the conversation well in advance

But employers and employees have to be aware of each other’s wishes and ideas, says Lindenberg. ‘I’d start this conversation maybe 10 years before the employee’s retirement age. Then at least you’ve talked about the matter. In any case, it is good to delve into this as an employer. There are also all kinds of subsidies, tax benefits and schemes in this area, so you can also take advantage of them. Of course, the tight labour market also helps in this regard. Although, in practice, I also see a lot of companies that are still not very enthusiastic, who see it as complicated or who do not really know what it means for the rest of the organisation. Change always takes energy. But research also shows that it can certainly pay off greatly.’

This article appeared on MTsprout.nl on 12 September.