comfortably has declined in light of the coronavirus pandemic – and only 27 percent are very confident that they will be able to fully retire with a comfortable lifestyle .” The spike in inflation exacerbates the low levels of confidence to retire comfortably even more . Those whose income is based on social security , fixed annuities , and retirement savings will be incentivized to go back to work to overcome the reduced purchasing power they have been faced with . As a result , some Coloradans may choose to remain in the workforce , due to a fear of insufficient savings to retire . While others may choose to stay because of the fulfillment they get from working and contributing to the economy , to maintain their health or to stay connected with their communities .
According to the 2020 AARP study “ Insights from Global Employers : The Future of Work is Living , Learning , and Earning Longer ,” 83 % of global business leaders recognize that multigenerational workforces are key to growth and longterm success of their companies . Multigenerational workforces are workplaces that employ people of all ages , allowing for innovation , collaboration and learning opportunities for all employees .
Acknowledging the skills , experience , and knowledge that older workers can bring to the workforce is an important first step in adjusting to the ongoing demographic shift . However , the same AARP survey indicated that global business leaders have not adopted internal policy changes to the same degree they recognize the opportunity and productivity impacts of doing so . Of the employers surveyed , 74 % agreed that they would provide training and lifelong learning opportunities for older employees if they were given the appropriate information on how to properly implement a program . As of December 2020 , only 6 % already had unbiased recruitment processes in place .
THE ECONOMIC CONTRIBU- TIONS OF COLORADO ’ S AGING WORKFORCE
The importance of Colorado ’ s aging workforce should not be overlooked . According to a 2018 AARP study , “ The Longevity Economy Outlook : Colorado ,” the 50 years and older population will continue to drive economic growth for the next 30 years . Using Regional Economics Models , Inc . ( REMI ), the AARP study found in 2018 that Colorado ’ s 50 years and older population contributed $ 153 billion towards the state ’ s total Gross Domestic Product ( GDP ), equivalent to 40 %. In the same year , this population ’ s market activities supported $ 10 billion in state and local taxes , 36 % of total taxes . The economic impact of the aging workforce is expected to increase to $ 513 billion or 42 % of GDP and $ 44 billion or 41 % of state and local taxes by 2050 . With the labor force participation rate still down from pre-pandemic levels , there is potential for lost economic benefits and contributions if the participation rate does not recover .
In 2018 , 50 years and older households were accountable for 53 cents of every dollar spent in Colorado but were only 33 % of total population . By 2050 , when the 50 years and older account for 41 % of population , they will account for 61 cents of every dollar spent , an 8 % increase . The economic contributions that the 50 and older population provides are significant and will only grow in the future .
It is necessary for employers to acknowledge the importance of the aging workforce and its contributions . Adapting to the aging workforce and its needs , as
well as the needs of employers for skilled and experienced employees , will be beneficial to Colorado ’ s economy . Providing flexible schedules , more comfortable work environments and letting go of age biases and discrimination will allow the aging workforce to remain active in the economy and ensure access to talent every employer needs . Subtle workplace changes are just the beginning of catalyzing changes for the aging workforce .
THE PATH FORWARD : POLICY CONSIDERATIONS TO CATALYZE CHANGE
To remain competitive , employers should expedite the changes needed to capitalize on the aging workforce . Most states are in a labor shortage due to the pandemic . For Colorado to stay at the www . aamdhq . org APRIL 2022 TRENDS | 33