May 21, 2025 • 11 mins
The U.S. Census Bureau projects that by 2030, one in five Americans will be of retirement age. Organizations are facing an urgent challenge: how to navigate massive talent shifts and skills gaps brought on by the wave of retirements, which experts are already calling the “Silver Tsunami.” In this episode of Work Week, Dr. Kelly Monahan, Managing Director of the Upwork Research Institute, explores the business impact of this retirement wave—and offers a practical playbook for bridging the growing skills gap. Learn how engaging freelancers, upskilling existing workers, and supporting flexible work arrangements can support business agility amid talent shortages.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:04):
- Hello and welcome to "Work Week,"
the podcast where wediscuss one big question
about the rapidly evolving workplace,
explore timely research about the topic,
and explain what it all means for you.
I'm Dr. Kelly Monahan,
Managing Director of theUpwork Research Institute,
and what you're hearingare my thoughts and ideas
(00:25):
guided by insights fromthe Research Institute
and brought to you by adigital proxy of my voice
that was created by ourteam with the help of AI.
Each week, I,
or one of my Upwork ResearchInstitute colleagues,
is here to help you make sense
of the structural changesredefining today's labor market.
(00:45):
Our goal is to helpequip you with insights
backed by real data,
real research, and real world application.
Last week, we exploredthe rising importance
of human-centered skills
in a work environment beingrapidly changed by AI.
This week, we turn our attention
to another significantshift already underway,
one that's quietly butsubstantially reshaping labor
(01:08):
in nearly every industry.
Our big question this week:
is your business prepared
to address skills gaps driven
by the looming wave of retirements?
Let's start with a number thatshould get your attention.
4.1 million Americansare turning 65 every year
and will continue to doso through at least 2027.
(01:28):
And consider this.
The year 2050 is as close in the future
as 2000 is in the past.
I don't know about you, but the year 2000
doesn't feel so long ago,
and by 2050, one in six people globally
will be aged 65 or over,
nearly double the number from 2019.
And that's a staggeringdemographic reality.
(01:50):
So many millions of Americans
are reaching the average retirement age
that many experts are callingit the silver tsunami.
This isn't a distant future challenge.
It's happening right now.
Industries from healthcareand manufacturing
to engineering and logistics
are already feeling the effects.
As baby boomers, many of whom have decades
(02:11):
of deep institutional knowledge, retire,
they're creating a talent vacuum
that many companiesaren't prepared to fill.
The result (02:19):
skills gaps are widening,
business continuity is at risk,
and leaders are scrambling topreserve operational knowledge
before it walks out the door.
But there is good news.
Leaders can deployactionable strategies today
to mitigate this transition
and even turn it into an opportunity
for developing greater agility
(02:39):
and resilience in their organizations.
So let's explore how we got here
and what we can do about it.
Retirement rates are accelerating,
but fully understanding the impact
is more complex than it may first appear.
The US Census Bureauprojects that by 2030,
one in five Americanswill be of retirement age,
and, globally, we'reseeing similar patterns.
(03:02):
Japan, Germany, Italy,
many developed economies like these
are facing population declines
and aging workforces simultaneously.
But here's what makes today'sretirement wave different.
Many older workers aren'tfully exiting the workforce.
Many baby boomers arechoosing to delay retirement
or never fully retire at all.
(03:24):
In fact, a 2024 surveyof 10,009 employed adults
conducted by the TransamericaCenter for Retirement Studies
found that 36% of employed workers expect
to retire at age 70 plusor do not plan to retire,
and 53% plan to continueworking in retirement.
(03:44):
Additionally, data fromthe Pew Research Center
shows that labor force participation
among Americans over 65 has nearly doubled
since the late 1980s.
Why?
Well, the reasons are varied.
Rising costs of living arecreating a financial necessity.
Longer lifespans means retirementcan stretch 20 or 30 years
(04:06):
or even longer.
And a desire to staymentally and socially engaged
is pushing many older adultsto continue contributing,
especially on their own terms.
This creates a fascinating paradox.
While formal retirements may be surging,
many older workers are opento flexible or part-time work.
(04:26):
And for employers, thispresents an opportunity.
Let's talk about the realbusiness implications
of the uptick in retirements.
When a tenured employee retires
or leaves for any other reason,
it's not just a headcount change.
It's a knowledge loss event.
These workers often possessdeep industry expertise,
client relationships, process know-how,
(04:48):
and historical context thatinforms decision making.
When longtime teammembers walk out the door,
it can take years and significantinvestments to rebuild,
and the wave of retirements
is only one of the manyfactors contributing
to growing skills gapsacross organizations.
Other factors include rapidlyevolving skills needs,
turnover, disengagement,and workforce restructuring
(05:11):
or layoffs due to economic uncertainty.
As we discussed in a previous episode,
in 2024 we surveyed 1,250 C-suite leaders.
35% of respondents indicatedthat they required team members
to expand their skillsets in the 12 months
leading up to the survey.
That tells us that manycompanies are reacting
(05:34):
to workforce gaps by pilingmore onto existing employees
rather than proactivelyaddressing the root issue.
So what's the solution?
Consider a few potential strategies.
Strategy one (05:45):
engage freelancers
to quickly fill skills gaps.
One of the most powerful tools
for addressing talent shortages
is right in front ofus: skilled freelancers.
When you lose a critical skill
or a retiree leaves your organization,
waiting months to find
a full-time replacementisn't always viable,
especially in today's fastmoving business environment.
(06:08):
Freelancers offer on-demandaccess to specialized expertise
and can be deployed quicklyto keep work moving forward.
According to our 2024 research
featuring insights from2,500 global workers,
49% of full-time workerssurveyed rely on freelancers
to address critical gapsto help them do their work.
(06:29):
Additionally, 51% ofC-suite leaders surveyed
agreed it would be difficult
to conduct their businesswithout support from freelancers.
Freelancers enablecompanies to scale expertise
without overburdeningthe remaining workforce
and without locking intolong-term fixed costs.
And as we've covered in previous episodes,
freelancers often outperformtraditional employees
(06:51):
in key areas like problem solving,
communication, and adaptability,
skills that are especially crucial
during workforce transitions.
This isn't only about patching holes,
it's about building a more flexible,
anti-fragile workforce model.
The second strategy to avoidoverburdening your workforce
is to up-skill and re-skillexisting team members.
(07:13):
Of course, freelancersaren't the only answer,
one of the most future-forward strategies
is to invest in theworkers you already have.
A 2025 LinkedIn learning survey
of 937 learning and development
and HR professionals found that 91%
of respondents believe continuous learning
is more important thanever for career success.
(07:34):
By proactively up-skilling your team,
especially in areas where retiring workers
possess mission-criticalskills and knowledge,
you can prevent both disruption
and increase retention.
In fact, the same LinkedInresearch found that 88%
of respondents are concernedabout employee retention,
and it shows that for many organizations,
providing learning opportunities
(07:55):
is a top retention strategy for 2025.
The most successful companies
aren't reacting to retirements.
They're proactively building cultures
of continual learning and agility,
which as we covered inour previous episode,
are skills that will be criticalin an AI-augmented world.
Our third and final strategy
to prevent overloading your workforce
(08:17):
is to encourage flexible freelance work
for un-retiring baby boomers.
Remember, not every babyboomer wants to stop working.
Many want to work differently.
The Transamerica Center forRetirement Studies Research
found that self-employed workersare particularly motivated
to continue working beyondtraditional retirement age.
(08:39):
56% plan to work at leastpart-time in retirement,
while 37% dream of doingpaid work in retirement.
And with the rise of remote
and freelance platforms,
companies now have more ways than ever
to engage self-employed freelancers
or to bring back retiredemployees on flexible terms.
Consider this.
(08:59):
Former employees oftenbring immediate productivity
due to minimal onboarding time,
strong company knowledge,
and established trustfrom peers and clients.
By retaining or rehiringretirees as freelancers,
consultants, or part-time advisors,
you can retain wisdom withoutthe traditional overhead.
This strategy isn't about corporate gain.
(09:21):
It's about offeringmeaningful, flexible work
to people who want to contribute,
but likely want more flexibility
than a traditional 40 hour week.
It's about making room forintergenerational collaboration.
The retirement model of the past
where people fully exitedthe workforce at 65
is being replaced withsomething far more fluid.
(09:43):
That's a good thing aslong as you design for it.
(calming music)
To close out this episode,as we do every week,
let's wrap up with one actionable step
you can take right now,
as well as a question to reflect on.
Here's our action item this week.
Take inventory of yourcritical skill areas
and identify which are most at risk
(10:04):
based on upcoming retirements,
turnover, or other factors.
Then ask yourself,
can a freelancer fill this gap temporarily
or even long-term?
Can an internal employee step in
after some re-skilling support?
Can a retiree return as afreelancer or consultant?
You don't need a five-yearplan to start adapting.
(10:24):
Start with one team, one skill gap,
or one upcoming retirement.
Build your workforce strategyone informed step at a time
to drive resiliency and anti-fragility.
As for this week's reflection question,
ask yourself what if thecompanies that thrive
through the silver tsunami aren't the ones
with the best traditionalsuccession plans,
(10:44):
but the ones with themost workforce agility?
Resilience and anti-fragility
aren't about having all the right people
in permanent roles,
but about having theright expertise available
at the right time
through a mix of full-time workers,
freelancers, and consultants.
If we let go of rigid models
and embrace more fluid talent strategies,
(11:06):
we can turn the silver tsunami
from a risk into a reinvention.
(calming music)
The aging workforce isn't a threat.
It's a call to adapt and develop.
That's it for this episode of "Work Week."
I'm Kelly Monahan,
and today, we explored how thelooming wave of retirements,
4.1 million Americansturning 65 each year,
is creating real and urgent skills gaps,
(11:29):
and we outlined how businessescan meet this challenge
with a blend of freelancers, re-skilling,
and flexible workforce strategies.
Thank you for listening.
If this episode gave yousomething to think about,
share it with your team
or someone who's navigating these changes
in their own organization.
And don't forget tosubscribe to "Work Week"
(11:49):
for more research-backed strategies
to help you thrive in the future of work.
- Hello and welcome to "Work Week,"
the podcast where wediscuss one big question
about the rapidly evolving workplace,
explore timely research about the topic,
and explain what it all means for you.
I'm Dr. Kelly Monahan,
Managing Director of theUpwork Research Institute,
and what you're hearingare my thoughts and ideas
(00:25):
guided by insights fromthe Research Institute
and brought to you by adigital proxy of my voice
that was created by ourteam with the help of AI.
Each week, I,
or one of my Upwork ResearchInstitute colleagues,
is here to help you make sense
of the structural changesredefining today's labor market.
(00:45):
Our goal is to helpequip you with insights
backed by real data,
real research, and real world application.
Last week, we exploredthe rising importance
of human-centered skills
in a work environment beingrapidly changed by AI.
This week, we turn our attention
to another significantshift already underway,
one that's quietly butsubstantially reshaping labor
(01:08):
in nearly every industry.
Our big question this week:
is your business prepared
to address skills gaps driven
by the looming wave of retirements?
Let's start with a number thatshould get your attention.
4.1 million Americansare turning 65 every year
and will continue to doso through at least 2027.
(01:28):
And consider this.
The year 2050 is as close in the future
as 2000 is in the past.
I don't know about you, but the year 2000
doesn't feel so long ago,
and by 2050, one in six people globally
will be aged 65 or over,
nearly double the number from 2019.
And that's a staggeringdemographic reality.
(01:50):
So many millions of Americans
are reaching the average retirement age
that many experts are callingit the silver tsunami.
This isn't a distant future challenge.
It's happening right now.
Industries from healthcareand manufacturing
to engineering and logistics
are already feeling the effects.
As baby boomers, many of whom have decades
(02:11):
of deep institutional knowledge, retire,
they're creating a talent vacuum
that many companiesaren't prepared to fill.
The result (02:19):
skills gaps are widening,
business continuity is at risk,
and leaders are scrambling topreserve operational knowledge
before it walks out the door.
But there is good news.
Leaders can deployactionable strategies today
to mitigate this transition
and even turn it into an opportunity
for developing greater agility
(02:39):
and resilience in their organizations.
So let's explore how we got here
and what we can do about it.
Retirement rates are accelerating,
but fully understanding the impact
is more complex than it may first appear.
The US Census Bureauprojects that by 2030,
one in five Americanswill be of retirement age,
and, globally, we'reseeing similar patterns.
(03:02):
Japan, Germany, Italy,
many developed economies like these
are facing population declines
and aging workforces simultaneously.
But here's what makes today'sretirement wave different.
Many older workers aren'tfully exiting the workforce.
Many baby boomers arechoosing to delay retirement
or never fully retire at all.
(03:24):
In fact, a 2024 surveyof 10,009 employed adults
conducted by the TransamericaCenter for Retirement Studies
found that 36% of employed workers expect
to retire at age 70 plusor do not plan to retire,
and 53% plan to continueworking in retirement.
(03:44):
Additionally, data fromthe Pew Research Center
shows that labor force participation
among Americans over 65 has nearly doubled
since the late 1980s.
Why?
Well, the reasons are varied.
Rising costs of living arecreating a financial necessity.
Longer lifespans means retirementcan stretch 20 or 30 years
(04:06):
or even longer.
And a desire to staymentally and socially engaged
is pushing many older adultsto continue contributing,
especially on their own terms.
This creates a fascinating paradox.
While formal retirements may be surging,
many older workers are opento flexible or part-time work.
(04:26):
And for employers, thispresents an opportunity.
Let's talk about the realbusiness implications
of the uptick in retirements.
When a tenured employee retires
or leaves for any other reason,
it's not just a headcount change.
It's a knowledge loss event.
These workers often possessdeep industry expertise,
client relationships, process know-how,
(04:48):
and historical context thatinforms decision making.
When longtime teammembers walk out the door,
it can take years and significantinvestments to rebuild,
and the wave of retirements
is only one of the manyfactors contributing
to growing skills gapsacross organizations.
Other factors include rapidlyevolving skills needs,
turnover, disengagement,and workforce restructuring
(05:11):
or layoffs due to economic uncertainty.
As we discussed in a previous episode,
in 2024 we surveyed 1,250 C-suite leaders.
35% of respondents indicatedthat they required team members
to expand their skillsets in the 12 months
leading up to the survey.
That tells us that manycompanies are reacting
(05:34):
to workforce gaps by pilingmore onto existing employees
rather than proactivelyaddressing the root issue.
So what's the solution?
Consider a few potential strategies.
Strategy one (05:45):
engage freelancers
to quickly fill skills gaps.
One of the most powerful tools
for addressing talent shortages
is right in front ofus: skilled freelancers.
When you lose a critical skill
or a retiree leaves your organization,
waiting months to find
a full-time replacementisn't always viable,
especially in today's fastmoving business environment.
(06:08):
Freelancers offer on-demandaccess to specialized expertise
and can be deployed quicklyto keep work moving forward.
According to our 2024 research
featuring insights from2,500 global workers,
49% of full-time workerssurveyed rely on freelancers
to address critical gapsto help them do their work.
(06:29):
Additionally, 51% ofC-suite leaders surveyed
agreed it would be difficult
to conduct their businesswithout support from freelancers.
Freelancers enablecompanies to scale expertise
without overburdeningthe remaining workforce
and without locking intolong-term fixed costs.
And as we've covered in previous episodes,
freelancers often outperformtraditional employees
(06:51):
in key areas like problem solving,
communication, and adaptability,
skills that are especially crucial
during workforce transitions.
This isn't only about patching holes,
it's about building a more flexible,
anti-fragile workforce model.
The second strategy to avoidoverburdening your workforce
is to up-skill and re-skillexisting team members.
(07:13):
Of course, freelancersaren't the only answer,
one of the most future-forward strategies
is to invest in theworkers you already have.
A 2025 LinkedIn learning survey
of 937 learning and development
and HR professionals found that 91%
of respondents believe continuous learning
is more important thanever for career success.
(07:34):
By proactively up-skilling your team,
especially in areas where retiring workers
possess mission-criticalskills and knowledge,
you can prevent both disruption
and increase retention.
In fact, the same LinkedInresearch found that 88%
of respondents are concernedabout employee retention,
and it shows that for many organizations,
providing learning opportunities
(07:55):
is a top retention strategy for 2025.
The most successful companies
aren't reacting to retirements.
They're proactively building cultures
of continual learning and agility,
which as we covered inour previous episode,
are skills that will be criticalin an AI-augmented world.
Our third and final strategy
to prevent overloading your workforce
(08:17):
is to encourage flexible freelance work
for un-retiring baby boomers.
Remember, not every babyboomer wants to stop working.
Many want to work differently.
The Transamerica Center forRetirement Studies Research
found that self-employed workersare particularly motivated
to continue working beyondtraditional retirement age.
(08:39):
56% plan to work at leastpart-time in retirement,
while 37% dream of doingpaid work in retirement.
And with the rise of remote
and freelance platforms,
companies now have more ways than ever
to engage self-employed freelancers
or to bring back retiredemployees on flexible terms.
Consider this.
(08:59):
Former employees oftenbring immediate productivity
due to minimal onboarding time,
strong company knowledge,
and established trustfrom peers and clients.
By retaining or rehiringretirees as freelancers,
consultants, or part-time advisors,
you can retain wisdom withoutthe traditional overhead.
This strategy isn't about corporate gain.
(09:21):
It's about offeringmeaningful, flexible work
to people who want to contribute,
but likely want more flexibility
than a traditional 40 hour week.
It's about making room forintergenerational collaboration.
The retirement model of the past
where people fully exitedthe workforce at 65
is being replaced withsomething far more fluid.
(09:43):
That's a good thing aslong as you design for it.
(calming music)
To close out this episode,as we do every week,
let's wrap up with one actionable step
you can take right now,
as well as a question to reflect on.
Here's our action item this week.
Take inventory of yourcritical skill areas
and identify which are most at risk
(10:04):
based on upcoming retirements,
turnover, or other factors.
Then ask yourself,
can a freelancer fill this gap temporarily
or even long-term?
Can an internal employee step in
after some re-skilling support?
Can a retiree return as afreelancer or consultant?
You don't need a five-yearplan to start adapting.
(10:24):
Start with one team, one skill gap,
or one upcoming retirement.
Build your workforce strategyone informed step at a time
to drive resiliency and anti-fragility.
As for this week's reflection question,
ask yourself what if thecompanies that thrive
through the silver tsunami aren't the ones
with the best traditionalsuccession plans,
(10:44):
but the ones with themost workforce agility?
Resilience and anti-fragility
aren't about having all the right people
in permanent roles,
but about having theright expertise available
at the right time
through a mix of full-time workers,
freelancers, and consultants.
If we let go of rigid models
and embrace more fluid talent strategies,
(11:06):
we can turn the silver tsunami
from a risk into a reinvention.
(calming music)
The aging workforce isn't a threat.
It's a call to adapt and develop.
That's it for this episode of "Work Week."
I'm Kelly Monahan,
and today, we explored how thelooming wave of retirements,
4.1 million Americansturning 65 each year,
is creating real and urgent skills gaps,
(11:29):
and we outlined how businessescan meet this challenge
with a blend of freelancers, re-skilling,
and flexible workforce strategies.
Thank you for listening.
If this episode gave yousomething to think about,
share it with your team
or someone who's navigating these changes
in their own organization.
And don't forget tosubscribe to "Work Week"
(11:49):
for more research-backed strategies
to help you thrive in the future of work.
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