Wilkerson: How South Carolina should respond as baby boomers don’t retire

About 76 million people were born between 1946 and 1964, marking the world’s largest generation to date. The aging of these baby boomers, an estimated 10,000 of whom turn 65 every day, is a demographic phenomenon with profound societal implications. For many years, the boomers’ retirement was perceived as a looming economic threat. The fear was that the global economy would take a severe hit with a significantly smaller pool of people able to drive production and spend on consumer goods.

The reality is far less grim. Merrill Lynch research shows that baby boomers are challenging many preconceived notions about old age, with nearly three-fourths of people over the age of 50 expressing a desire to continue working in retirement. These shifting ideas have the potential to make a large impact in South Carolina, where residents 65 and older made up more than 15 percent of the state’s population in 2013 and will grow to 22 percent by 2030. The South Atlantic region is also the No. 1 region where pre-retirees want to continue living as they age and the No. 1 place where pre-retirees from other regions want to move. This provides added benefits and opportunity to those already living here.

Last month, Bank of America Merrill Lynch partnered with the Global Coalition on Aging to convene a roundtable in Columbia on retirement and the economic opportunities generated by our aging population, where we discussed the growing impact that baby boomers will have on South Carolina and the nation’s economy.

Rather than being a drain on local economies, a large aging workforce has the potential to spur growth. As with the integration of women into the workforce during the 20th century, older workers have the potential to drive higher overall economic development. Studies have shown that employment of older people leads to increased employment and higher wages for younger workers. Global companies are recognizing these opportunities and have started to modify strategies to enable their aging employees.

For example, Michelin, with its U.S. headquarters in Greenville, has been recognized numerous times by AARP as being one of the best employers for workers over 50 as the company has invested in initiatives from ergonomic accommodations to continuing education courses to retain their experienced and older workers.

In the public sector, the roundtable discussed the role of urban planning and how it address the needs of older residents. Planning should promote active aging, which includes ensuring the health and safety of residents as well as encouraging civic involvement. Additional considerations include better public transportation, as well as development programs and community-volunteer programs for older adults.

Now is the time for South Carolina to consider the best ways to serve its aging workforce. In Spartanburg, Cherokee and Union counties, 42 percent of the workforce is more than 50 years old. With such a sizable older population, businesses and civic leaders must foster inter generational collaboration and identify ways older residents can remain active and engaged in the workforce as drivers of economic growth. Companies, as well as the communities in which they operate, will benefit from creating “age-diverse workplaces” with tangible, measurable gains in terms of productivity, competitiveness and worker satisfaction.

As the ongoing conversation about retirement changes our workplaces, it is up to all of us to start thinking about aging differently than we have in the past. Capturing the abilities of our expanding older workforce will require workplace modifications, new definitions of retirement and savings, and investment in training and education. While public policy and the private sector work to harness the economic impact that mature workers can provide, being informed about the opportunities and pitfalls will help ensure a successful path.

Learn more about trends in retirement and our retirement studies at ml.com/retirementstudy.

This story was originally published April 19, 2015 at 11:05 PM with the headline "Wilkerson: How South Carolina should respond as baby boomers don’t retire."