Companies spent years worrying about what would happen when Baby Boomers retired. But what if they don’t retire?

Americans are working later than they used to. In 2025, 19.1% of people 65 and older were working or looking for work, compared with 12.9% in 2000, according to the U.S. Bureau of Labor Statistics.

People keep working past 65 for all kinds of reasons. They may need the money, they may really like what they do, or they may just not be ready to walk away from a career they spent decades building.

The issue isn’t that someone wants to keep working. It’s what happens to the people below them who have been waiting for the next opportunity.

When the Next Job Doesn't Open

Most succession planning focuses on what happens when someone leaves.

Who can take over? Who needs more development? Is there someone internally who could step into the position?

That assumes the person you’re planning to move up will still be there when the job finally opens.

Someone who expected a senior leadership opportunity within a few years may be willing to wait. But you can only dangle that carrot for so long before they start looking elsewhere. And this can happen well below the C-suite. If the next step depends on someone above you leaving, there may simply be nowhere to move.

A Promotion Problem Can Become a Hiring Problem

When retirement gets pushed back, promotions can get pushed back with it.

The Bureau of Labor Statistics has looked at how employers are affected when employees delay retirement. One of the issues it identified is fewer promotion opportunities for the people behind them.

There is research showing how that can play out. A study published by the National Bureau of Economic Research found that when older employees in higher-level positions in Italy delayed retirement, promotion opportunities for other employees declined. It’s not the U.S. workforce, but it’s an interesting look at what can happen when positions that were expected to open stay occupied longer.

A succession plan can look great on paper. It doesn’t do much good if the person you planned to promote gets tired of waiting and leaves.

That doesn't necessarily mean inventing titles or promoting people before they're ready. It does mean recognizing that a succession plan built around an eventual retirement date may look very different when that date keeps moving.

When People Stop Waiting

You can be ready for the next position and still have nowhere to go inside your company.

Someone can like the company, respect their boss, and still realize the job they want may not open for years. They may not be looking for another job, but that doesn’t mean they won’t listen when a recruiter calls.

The person who leaves may not have been unhappy. They may have reached a point where waiting was no longer a career plan.

For job seekers, there are really two questions: Am I ready to move up? And is there somewhere for me to go here?

Those aren't always the same question.

Succession Can Break Before Retirement

Companies have spent years preparing for the loss of experience that could come with Baby Boomer retirements.

Keeping some of that experience longer can be an advantage.

Succession planning can’t only be about who takes over when someone leaves. You also must think about how long the person you’re counting on is willing to wait. Keep them waiting too long, and when the position finally opens, you may be recruiting for two jobs instead of filling one internally.

About the Author: Nelleke Maxwell is Co-Owner of Neeljym Search Group, a specialized recruiting firm serving the commercial insurance, engineering, commercial construction, manufacturing, and industrial sales industries. She works alongside clients and the Neeljym team to support business growth through recruiting, industry insights, and thought-provoking content focused on leadership and hiring.