Bridging the retirement readiness gap – A strategic HR opportunity

By 2050, the Asian Development Bank projects that the number of individuals aged 60 and above in Asia will reach nearly 1.3 billion. With almost one in four people reaching retirement age, this demographic shift creates an urgent need for strategies to address an ageing workforce’s challenges and opportunities.

With global competition and rapid technological advancements reshaping industries, traditional hierarchies based on age and seniority are being replaced by innovative approaches to talent management, knowledge sharing and future planning that embrace a multi-generational, highly digitalised workforce.

However, in the drive for competitiveness and efficiency, it is essential to not overlook the human element. Phasing out older employees as mere numbers on a balance sheet is a costly HR mistake that risks losing invaluable experience and institutional knowledge.

Retirement can deeply impact both employees and the organisations they leave behind. Stepping away from a role of influence, authority, and respect can be a deeply challenging transition for long-serving executives. In many Asian cultures, where the concept of face is deeply ingrained, seniority has long been seen as a badge of honour. To see this become merely a marker of age can evoke complex emotions – loss of dignity, insecurity, and even resentment.

Clients have often shared how these feelings of being undervalued intensify when they are expected to relinquish responsibilities and hard-earned portfolios to others they perceive as less “qualified” or “deserving”. The resentment that comes with having to pass on their knowledge – often without due recognition – can turn the final stage of their career into a tense and emotionally charged period.

Many talk about their retirement anxieties – financial concerns, self-worth issues, and uncertainties about life beyond work – that make the prospect of imminent retirement more distressing. This can often lead to a loss of focus, commitment, and interest in work, a vicious cycle that further diminishes their perceived value to the organisation.

The broader implications of having disgruntled late-stage career employees and the potential loss of institutional knowledge present a significant HR challenge. Gaps in expertise, processes, and long-established relationships with clients, partners, and suppliers can pose serious risks to efficiency and business continuity, as well as to team dynamics and productivity.

Supporting employees through the emotional and practical aspects of this transition is a way to mitigate these risks. Investing in their wellbeing, even in the lead-up to retirement, shows employees they are still valued even as their roles change. This not only boosts their confidence but also helps maintain their sense of purpose within the organisation. And this is not just an act of goodwill – it is a strategic HR approach that cultivates ongoing commitment to work and ensures smooth handovers, safeguarding the organisation’s operational stability.

Assisting financial readiness

Financial readiness is recognised as one of the most significant stressors of retirement. HR-led initiatives such as workshops, seminars, and access to expert financial advisors can play a critical role in easing employees’ concerns. Encouraging employees to start financial planning for retirement early through structured support helps employees make informed financial decisions, reducing uncertainty and fostering confidence in the move towards life beyond work.

Guiding employees into the next chapter

While traditionally associated with leadership development, coaching is also invaluable for supporting employees through their retirement transition. It provides a safe space to address personal insecurities, navigate concerns, and receive personalised guidance to help them prepare for the next chapter of their lives.

Coaching encourages positive reflection on one’s career, celebrates achievements, and reinforces the transferable skills that can be taken into life beyond work. It also helps individuals confront fears, challenge limiting beliefs, explore new possibilities, and define a clear, purposeful vision to step into retirement with confidence and clarity.

Leadership to legacy

Recognising the value of their continued contributions, transitioning senior employees from leadership to advisory and mentoring roles helps ease the emotional challenge of relinquishing authority. Being respected and appreciated for their expertise in a different capacity provides a renewed sense of purpose, reinforcing the important role that they have played in contributing to the organisation’s legacy.

Leveraging post-retirement engagement

Creating active alumni networks that offer retirees a lasting sense of identity and purpose cultivates goodwill and loyalty, which HR can enlist to support the organisation’s reputation. This positive regard makes retirees powerful brand ambassadors in recruitment efforts, new staff orientations, and HR award showcases – reinforcing the strength of the organisation’s culture and values.

Today’s employees seek more than just a paycheck – they desire meaningful work, a healthy work-life balance, and overall wellbeing. By integrating retirement support into a forward-thinking HR strategy, organisations show a genuine commitment to valuing employees throughout their careers, reinforcing their standing as an employer of choice.

About the Author:

Jennifer Dunbar is an ICF credentialed (PCC) Executive, Personal Development, and Mindset Coach specialising in corporate and personal retirement transition coaching.