For retirees, the loss of their professional identity can take a major mental toll. When employers help them get ahead of the transition, it's
Over the next five years, nearly 15 million workers are expected to retire, according to an analysis by the Retirement Income Institute (RII). While employers often help people
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Research shows the depression rate among retirees is 28%. The emotional stakes may be even higher for employees who are forced into retirement by events such as layoffs, illness or
"What [people don't] understand is how much we as human beings are identified with what we do, often professionally," Parsons says. "You're asking people to let go of projects they've possibly been working on for months or years, initiatives that were their baby … [and] all kinds of relationships that work has provided. It's easy to overlook how disruptive and jarring that is."
Regardless of how retirement happens, many people find it difficult to imagine what their post-career lives will be like, says Parsons. HR managers can get the ball rolling before employees make their exit, increasing the odds of a happy transition.
A benefits toolkit for retirement readiness
Benefits like retirement coaching resources, as well as workplace seminars on what to consider before retiring are important resources for benefit managers to offer employees at this stage. Parsons notes that these efforts don't need to be costly or a heavy lift — it's more about shining a light on blind spots.
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Parsons points to the value of onboarding programs with all of the basic things employees will need to function at work, and offers a reverse suggestion: A retirement-focused offboarding program. This could include anything retirees will need to know if their benefits are changing or are no longer available, as well as necessary skills in areas like technology, Parsons says.
"It would be incredibly valuable to people to have a 'how to' on how you manage a digital transition," Parsons says. "There are a lot of people out there using their work emails to do [everything], and people don't realize what a project it is to translate all of that into a new environment. Equipping people with that information and some basic resources would go a long way to smoothing the ride out."
Having a toolkit in place also means that even if an employee faces retirement unexpectedly, resources are immediately available to help them.
To allow for a more gradual exit and maximize veteran employees' expertise, managers can also look at ways to bring company alumni back in a consulting or mentoring role. Parsons points out that a healthy pivot away from full-time work means finding a balance of leisure and engagement, and this is an option that benefits businesses as well.
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When someone has given their time and effort to an organization, having a good transition into retirement should be part of their employee experience. The more leaders can guide them toward preparation, the better.
"The best ideas are not incredibly tough to implement," Parsons says. "These are smart strategies, and they soften the landing for people."
For more on retirement readiness, check out these articles:
Retirees have no financial plan: How benefit managers can help employees now Emergency savings benefits address student loan and retirement stressors Long-term care costs can derail retirement plans. Here's how to manage them How benefit managers can maximize 401(k) plans Voya reveals 'severe impact' on retirement savings due to tariffs
