From 1985 to 2014, the rate of participation in the labor force for people 65 to 69 increased to almost 32 percent from about 18 percent, according to the Bureau of Labor Statistics.  "That's a whopping increase," said Sara E. Rix, a former senior adviser with the AARP Public Policy Institute. "Even at the oldest ages — 75 and above — people are more likely to be in the labor force today than they were 20 or 30 years ago."  Delayed retirement is a consideration for an array of reasons, but for many people, money is the fundamental factor. "Financial necessity dictates the need to work for most of my older workers," Ms. Nordman said.  In June, the Senate Special Committee on Aging held a hearing to investigate the topic: "Work in Retirement: Career Reinventions and the New Retirement Workscape." Senator Susan Collins, a Republican from Maine and the chairwoman of the committee, has been a leading voice advocating the value of older workers.  Read More Unclaimed assets on the rise—are you missing money?  "The face of our nation's work force is changing," Senator Collins said. "I think we're facing a tsunami of retirees who will find that they are going to outlive their savings, that they have not prepared for their retirement."  Ms. Nordman, Ms. Rix and James C. Godwin Jr., vice president of human resources at the nonprofit Bon Secours Virginia Health System, testified at the hearing. (In full disclosure, I also spoke at the hearing, after being invited to testify on my views of the challenges Americans who work into their 60s and 70s may face and the value that older workers can add to the workplace.)  Although having flexible work schedules and phased-in retirement programs is popular with workers, employers have been slower to adopt them in a formal way.  The good news is that a majority of employers with 50 or more employees do offer flexible work options to some of their workers. But few do for all.  Read More How employers can boost retirement savings  With labor still relatively plentiful, most employers don't feel compelled to do so. "They simply don't want another benefit that may be subject to laws and regulations, as a formal program probably would," Ms. Rix said. "Employers want to keep certain workers, but they don't want to offer a new benefit to everybody, and in fact, they probably couldn't. It can be expensive from both an administrative and benefits perspective."  Bon Secours Virginia Healthcare System, a nonprofit organization based in Richmond, Va., with more 13,000 employees, is a good example. "Phased retirement isn't a specific program that one enrolls in," Mr. Godwin said. "Rather, it is a corporate philosophy built on workplace flexibility and a willingness to accommodate workers' needs in a way that also benefits our ministry."  Bon Secours employees can gradually work fewer hours or step down to less demanding positions. That typically results in a drop in salary, but they can start drawing their retirement benefits to help maintain their income. Employees can also keep their employer-provided health insurance benefits as long as they are working at least 16 hours a week.  The federal government has plans to ease the transition to retirement for its older workers. But the program is off to a halting start.  Read MoreWhat disability, pensions mean for Social Security benefits  Three years ago, Congress approved legislation for an employee phased retirement program. Under the program, federal workers who take phased retirement work 20 hours a week and agree to mentor other workers. During that time, they receive half their pay and half their retirement annuity payout. When workers retire completely, their annuities will include an increase to account for the part-time service.  Agencies could start accepting applicants last autumn, but it is not mandatory and those that introduce it are able to limit the jobs that are eligible and how long someone can retain a partial retirement status, among other options. And some agencies, including the United States Postal Service, have announced that they will not adopt the program now.
As the retirement age continues to slip later and later some bosses are opting to become even more accommodative. NYT reports.