AI push is nudging some veteran tech workers toward early retirement

A shift toward artificial intelligence is prompting some veteran technology workers to retire earlier than they expected, retirement advisers told Fortune. The departures could remove experienced employees from companies at a time when employers are reshaping jobs around AI tools.

Jennifer Kerns, 60, told Fortune she retired in March after more than 30 years in technology, including a recent program manager role at GitHub, the Microsoft-owned developer platform. Before GitHub, she spent 25 years as a contractor at Microsoft, according to Fortune.

Kerns said several factors pushed her toward leaving: much of her leadership chain had exited over a period of years, her youngest child was nearing the end of eligibility for the family insurance plan, and AI had become the company’s main focus. She told Fortune she did not doubt her ability to learn the tools and was not mainly worried about job loss; she said she did not want to work with AI at this point in her career.

Workplace change joins familiar retirement triggers

An Allianz Life study published in May found that 42% of Americans retire earlier than they planned, while the typical retirement age has remained roughly between 62 and 64. Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute, told Fortune that early retirement is commonly tied to health problems, caregiving needs or changes at work.

Copeland said workplace disruption has become more relevant in technology as companies reorganize around AI and reassess what they need from employees. That can force late-career workers to decide whether they want to adapt to another major shift, he told Fortune.

Steve McConnell, founder of Rain Dog Financial, told Fortune that tech workers face repeated waves of change. Over the span of Kerns’ career, the industry moved through personal computers, the internet, mobile technology, cloud computing and now AI, he said.

McConnell said the work required to master a new technology can be substantial, especially for employees who have already done it several times. Late-career workers may decide whether the next wave is worth the effort, he told Fortune.

AI skepticism and buyouts add pressure

Kevin Estes, a Seattle financial adviser and founder of Scaled Finance, told Fortune that some clients considering retirement understand that leaving now may make it harder to reenter the technology workforce later. He said broader AI adoption could leave returning workers behind if they sit out for months or years.

Estes also said some workers are skeptical that AI will deliver what companies expect. He told Fortune that many people see the excitement around AI as exaggerated and worry the tools may fail to reliably produce code, systems or processes that meet expectations.

Buyout programs may also affect retirement decisions. CNBC reported in April that Microsoft offered a one-time voluntary retirement program to certain U.S. employees whose age and years of service totaled at least 70, and that the plan targeted about 7% of the company’s employees. Kerns told Fortune she heard from former colleagues that the program made the choice easier for some workers, especially those without children.

Estes told Fortune he views such incentives as cost-cutting measures because senior workers often earn more than entry-level employees. Kerns said the loss of veteran workers could weaken mentorship for newer hires, even as companies such as IBM plan to expand entry-level opportunities.

McConnell warned Fortune that losing senior engineers could also reduce the judgment needed as AI develops. Robert Laura, cofounder of the Retirement Coaches Association, offered a different view, telling Fortune that retirees still contribute through spending, caregiving, volunteering and later work in other fields.

AARP reported that adults over 50 generated $12.5 trillion in economic activity in 2024 and provided $1.2 trillion in unpaid care and volunteering. Laura told Fortune that many people leave their main career but continue working in roles they find meaningful.

This story draws on original reporting from Fortune.