Boomers currently represent the majority of political, cultural, industrial and academic leaders in the U.S. Their departure from the workforce through retirement will represent a huge drain on the institutional knowledge and expertise of businesses and organizations. The Department of Labor is already projecting a labor shortage as early as 2012, with fields like education, health care, public utilities, engineering and nursing set to suffer from a scarcity of workers.

At the same time, concerns abound regarding Boomers’ lack of adequate financial readiness for retirement. A McKinsey Global Institute report (2008) found that having a workforce that continues to work a few years beyond the traditional retirement age is the only way for Boomers to prevent a decline in their own standard of living and not drag down U.S. economic growth. The report estimates that a two-year increase in the median retirement age — from 62.6 to 64.1 over the next decade — would add nearly $13 trillion to real U.S. GDP during the next 30 years while reducing by almost half the number of Boomers who would find themselves without enough money for retirement.

Extended years in the workforce, however, will not mean 'business as usual' for Boomers. They will want and seek a new phase of work — one that is purpose driven, dynamic, flexible and radically re-structured (see the 2003 LGH Career Transition Study [pdf]). Many may pursue lifelong dreams previously seen as unrealistic or untenable but now ideal for mature individuals seeking new challenges. Encore careers and new business ventures may flourish. A 2008 Civic Ventures survey found that more than 5 million people ages 44 to 70 have begun encore careers and of those not already in encore careers, half say they want them. So Boomer financial woes and a coming labor shortage could actually add up to a positive. By continuing to work, Boomers may be able to address their financial needs while helping society achieve a powerful return on their experience and expertise by 'making a difference' in the lives of others. In the process, Boomers may even reinvent 'how' we all work.