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Rethinking retirement: Impacts on today’s workforce

Photographic portrait of Laura Flynn
Laura Flynn

EY Ireland Partner Head of People Consulting

5 minute read 05 Jun 2025
Related topics
Workforce
Consulting

Discover how the change in retirement trends is reshaping the workforce, blending experience with fresh perspectives for success.

In brief

  • Rising Employment: Employment for those aged 65+ increased by 57% from 2019 to 2024, reflecting a desire for continued purpose. 
  • Diversity Advantage: Multigenerational teams enhance creativity and problem-solving in organisations. 
  • Flexible Structures: Companies should prioritise skills over tenure to advance intergenerational collaboration.

The Future of Work: Welcome to the New Age 

The world of work has a new trend; employees are no longer quite so keen to hang up their hats. More individuals are choosing to remain in the workforce beyond the traditional retirement age. According to recent data from the Central Statistics Office (CSO), the number of people aged 65 and over who are employed has surged by 57% from Q2 2019 to Q2 2024, climbing from 78,100 to 122,300. Beyond financial motivation, this change actually reflects a deeper desire for purpose and engagement in the workplace. 

Understanding the Trend 

Several factors contribute to this new development. While rising cost of living and increased life expectancy mean that retirement savings have to stretch further, many workers are motivated by more than money. Older workers, in particular, value stability, loyalty, and a sense of purpose. Continuing to work provides a means to contribute, mentor others, and stay mentally active. 

The COVID-19 pandemic also played a role here. The move to remote and hybrid work has lowered barriers to continued employment, making it easier for older individuals to remain engaged in their careers. A recent survey by EY, which included over 17,350 employees and 1,595 employers globally, revealed that older employees are less likely to plan on leaving their jobs compared to younger generations, indicating that job satisfaction and autonomy are key factors in their decision to stay on. 

Opportunities for Employers 

This trend presents a unique opportunity for employers. The traditional notion that working life ends at 65 is changing. Strategic and future-focused organisations will use this development to encourage age diversity within their teams. Each generation brings distinct strengths to the workplace, from the relationship-building skills of one group to the digital agility of the next. By tapping into these strengths, organisations can cultivate the cognitive diversity that is known to enhance creativity, innovation, and adaptability. 

Research indicates that 65% of managers believe that multigenerational teams improve problem-solving and innovation. Sectors such as professional services, healthcare, and education are already capitalising on the expertise of senior workers, using them as mentors and knowledge anchors.

Sharing knowledge between generations is key to success. By combining the experience of older workers with the fresh ideas of younger ones, organisations can create stronger teams that learn from each other and grow together.

Laura Flynn

EY Ireland Partner Head of People Consulting

Cross-generational learning is another avenue for growth. Younger employees, who are driven by ambition and financial goals, can benefit from the wisdom and resilience of their older colleagues. In turn, older generations can gain insights into digital literacy and emerging trends through reverse mentoring. 

Addressing Challenges 

But… it’s not all ‘teamwork makes the dream work’. The presence of older workers can sometimes be perceived as a barrier to the next generation’s career progression. This sentiment should not be overlooked by those in charge. Especially when it’s true. Often, the real challenge lies not in the age of the workforce but in the rigidity of career structures within organisations. Many still run with outdated models where advancement is tied to vacancy rather than capability.

Generally speaking, it is more costly to replace an employee than to promote them; investing in your team not only inspires loyalty but also enhances productivity and morale.

Laura Flynn

EY Ireland Partner Head of People Consulting

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Addressing this, organisations can adopt flexible career pathways that prioritise skills and contributions over tenure. This can include rotational leadership roles, project-based assignments, and opportunities for mentoring. By actively encouraging open intergenerational dialogue, organisations can ensure that younger employees feel heard while empowering older colleagues to share their experiences.

 

Strategies for Success

 

To make the most of new mindsets, organisations must focus on intentional design. Research shows that organisations with inclusive cultures are considerably more likely to respond effectively to external pressures and report productivity gains.

 

One strategy is to implement two-way mentoring programmes, where younger employees’ mentor senior colleagues on new technologies and trends. EY has successfully used this model, pairing Gen Z staff with senior leaders to facilitate mutual learning.

 

Additionally, organisations should consider team design that promotes cross-generational collaboration. Structured project teams that mix younger and older employees can lead to stronger collaboration and idea diversity. Engaging early-career employees as stakeholders in key initiatives ensures that diverse voices are heard in decision-making processes.

 

Finally, personalising support according to employees' life stages is crucial. Flexibility means different things to different generations, whether it’s remote work for younger staff or phased retirement for earlier generations.

 

Offering tailored support through expanded employee value proposition helps employees of all life stages feel valued and invested at work.

 

Conclusion

 

As the workforce continues to change, organisations that see age diversity as a strategic advantage will be better positioned for success. With more over 65s choosing to stay in employment, we have a new opportunity to blend experience with fresh perspectives. By realising value from all age profiles and developing an inclusive culture, employers can access the full potential of an engaged workforce.

Summary

The article explores the rising trend of workers staying in employment beyond retirement age. With a 57% increase for those 65 and older, companies are realising the value of multigenerational teams that blend experience with new ideas. Employers are encouraged to adapt by prioritising skills over tenure and creating flexible career paths. Through open communication and mentorship between generations, organisations can take advantage of their new demographics, tapping into strengths of all age groups for a more effective workplace.

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    About this article

    Photographic portrait of Laura Flynn
    Laura Flynn
    EY Ireland Partner Head of People Consulting
    Passionate about leading transformation to create the best outcomes for people and organisations.
    Related topics
    Workforce
    Consulting

    EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.