The Future of Aging and Longevity - Flipbook - Page 31
of older workers should lead their wages to fall
rela琀椀ve to younger workers, but the very opposite
has happened. For example, in the US, the pay
gap between workers over 55 and those under 35
increased by nearly two-thirds between 1979 and
2018.30 This is consistent with older workers staying
in higher-paying jobs for longer, while pushing some
younger workers toward lower-paying roles.
These career pressures are especially concerning
because 昀椀rms do not appear to be expanding the
training investments that would compensate younger
workers for slower advancement during earlycareer stages. Instead, faced with a larger than usual
number of experienced workers, 昀椀rms seem to be
responding by reducing employer-paid training.31
Many younger workers are therefore at each age
receiving lower wages, gaining less experience, and
experiencing reduced training, with their life琀椀me
earnings adversely a昀昀ected by the con琀椀nued
employment of older workers.
Ensuring a more equitable intergenera琀椀onal
adjustment to longer working careers requires
three shi昀琀s in the decade to come. First, 昀椀rms
and policymakers should expand the supply
of age-friendly jobs and encourage mid-career
transi琀椀ons. Age-friendly jobs can reduce
compe琀椀琀椀on between younger and older workers,
and easier career transi琀椀ons can free up roles for
younger workers. Second, 昀椀rms need to create
greater intergenera琀椀onal connec琀椀vity between
younger and older workers to speed up knowledge
transfer. This helps 昀椀rms both avoid a large loss of
昀椀rm-speci昀椀c knowledge when an older genera琀椀on
re琀椀res and accelerate the training of the younger
genera琀椀on. Finally, 昀椀rms need to avoid hierarchical
structures based on tenure if they wish to support
innova琀椀on. Younger workers tend to be more
innova琀椀ve, but evidence shows that the most
successful innovators combine the insights of
younger and older researchers.32
Longer lives require individuals to work for
longer. This isn’t an issue only for older workers but
a昀昀ects the career paths of all ages. Suppor琀椀ng longer
working careers requires inves琀椀ng in the health and
skills of older workers and tackling ageism. But it
also requires changes in career paths, training, and
organiza琀椀onal structures if everyone is to bene昀椀t.
We need work and careers to work at all ages.
Re琀椀rement is increasingly seen as a transi琀椀on, not an endpoint. Most workers plan to con琀椀nue working part琀椀me a昀琀er re琀椀ring, and workers 55+ are less likely than younger adults to want to stop working altogether.
Currently Employed Adults’ Working Inten琀椀ons in Re琀椀rement
Stop working
altogether
Con琀椀nue
working full 琀椀me
Con琀椀nue working
part 琀椀me
0
10
% of Americans
20
30
18-34
40
35-54
50
60
55+
Source: Gallup, Economy and Personal Finance survey, conducted April 1–15, 2026
A D ECA D E O F P RO GRE S S , A D ECA D E TO ACT 27
