Last week I received a query from an organisation that is seeking to assist its senior employees above the age of 65 with retirement planning.

The employer retained the services of these seniors because of their competence, wealth of experience, training, and knowledge. However, on the other side of the coin, these workers have no pension plan in place to provide a continuous stream of income in retirement. It’s a case of better late than never in putting a financial plan in place for their eventual retirement.

Retirees are a source of employment for the growing skills gap, which exists not only in Jamaica but globally. A year ago, a senior retiree shared that he re-entered the workforce to train recruits and younger employees as his skill set was needed in the company where he’d worked for most of his career. The training, employability, and productivity of older employees usually have a positive impact on the workforce. Older adults are capable of learning new skills and with adequate training these seniors can perform technology-driven jobs. With a falling fertility rate and a fast-growing ageing population, policymakers are challenged to create an environment that encourages people to stay longer and provides the necessary training and resources for seniors to remain employable.

If seniors or retirees upgrade their skills this could augur well for productivity within the workplace and boost economic growth.

In last week’s article, I spoke about never retiring one’s mind. It’s important for senior employees to keep their minds engaged by learning new skills. In the same way that the body needs exercise, the same goes for the brain. Once the brain and the mind remain engaged, the outcome will be improved memory and communication skills. Physical exercise can help to counter the onset of dementia or memory loss in seniors.

A research by the IZA Institute of Labour Economics in Berlin reported that a “significant group” of older workers prefer to work longer hours. According to the Australia Bureau of Statistics, in February 2023 more than 40,000 adult workers (aged 65 and over) were employed than in February of last year as retirees returned to work for much-needed income and to counter rising inflation.

Based on the survey, employers employ retirees because of their specialised knowledge, invaluable experience, and the ability to apply technical know-how and skills to problem-solving. Mentorship to younger workers who enter the workforce is another reason for employers contracting the services of retirees. It has been proven that older workers can readily adapt to technological changes within organisations and industries. It’s also a proven fact that there are older employees and retirees who are conversant with the technological advancement that is necessary in the workplace. They appreciate the role of digital transformation in making them more efficient at their jobs. Life-long learning for older workers is recommended as a skills gap still exists among younger employees. Employers who encourage and implement work-based learning will be able to retain older workers, thereby retaining knowledge and competence that will benefit the organisation and employees alike. Work-based strategies encapsulate cross-training, mentorship, and apprenticeship. These strategies help organisations retain important knowledge and skills within the company when older employees eventually retire.

Some workers, however, have not saved enough for retirement, and others are delaying retirement due to the downturn in the economy in recent years. Pension funds globally, and in Jamaica, declined in 2022.

As the private sector and the Government of Jamaica ponder the next move in bridging the skills gap locally, I recommend that the authorities create a think tank consisting of qualified seniors to assess how retirees can play a role in mentoring the young people who are in secondary schools. The authorities should also rethink the role of technical schools that have helped in producing professionals of distinction in the various sectors of the economy. The manufacturing sector, in particular, can partner with technical schools in preparing students for careers in industries, utilising the knowledge and experience of its adult employees and former employees who seek to re-enter the workforce.

There is a significant gap between what students are studying and the skills employers are seeking. The face of retirement is changing, and retirees have an important role to play in shaping the future.