An impending wave of retirement—what does that mean for you?

One of the surprising side effects of the pandemic has been an increase in retirement rates among Americans aged 55 to 65. The pandemic has accelerated many pre-existing trends, such as flexible working arrangements, a preference for online shopping, and the sunsetting of careers. This surge in retirements is partially due to increased layoffs. Still, a more likely explanation for this phenomenon is the rise in home values and the stock market, along with a renewed realization that life is short. The isolation of the last year has worn on many people, and they have come to acknowledge that they missed traveling, spending time with their families, and doing things other than staying home and working. Those people with the means to do so are choosing to retire and focus on other things of value.

This retirement wave will strain employers as they are faced with a “brain drain” of talent leaving companies. Companies rely on workers not merely to perform tasks but also for their accumulated expertise and knowledge. They also lose their most highly productive workers when those over age 55 decide to retire. 

So, what does this mean for the rest of us who aren’t quite ready to retire yet? It means tremendous opportunity. Yes, companies are always looking to cut costs, and not all vacated jobs will be filled. However, they will be unable to continue to be profitable, productive, and competitive if they have considerable gaps in knowledge and capabilities. And, despite rumblings, there are still many jobs that cannot be automated. For those who wish to remain in the workforce, there will be many prospects on the horizon. 

If you wish to build your career, you will need to not only stay on top of emerging technologies but, even more importantly, develop your soft skills. Skills such as empathic listening, clear communication, and critical thinking are crucial and surprisingly challenging to recruit. The reason any business exists is to solve problems for its customers. That’s why companies need people who can articulate problems clearly and solve them quickly, creatively, and thoroughly. 

Developing soft skills like resilience, emotional intelligence, and agility is a great way to make you valuable to employers, regardless of your career level. Although more roles will become available, there will still be competition for them. It is easiest to recruit for technical skills and knowledge. The intangible characteristics you bring to a role differentiate you from your competition, so work on honing those, and go out there and sell your product—YOU!