New Report Offers Solutions to Healthcare Staff Turnover, Employee Stress and Burnout Ahead of 2050 Predicted Surge in Aging Patients

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Aug 20, 2025, 10:00 ET

TIAA Institute and High Lantern Group unveil a three-part strategy to attract talent, boost retention and drive productivity in the U.S. healthcare system

NEW YORK, Aug. 20, 2025 /PRNewswire/ -- The future of the U.S. healthcare system is facing numerous challenges—from a growing aging population to workforce gaps and rising costs—but a new report from TIAA Institute and the High Lantern Group suggests the cure to some of these problems may lie in how health systems hire, train and retain employees and improve productivity, including with AI.

The report, "Creating a Sustainable U.S. Healthcare System," links employee burnout and high turnover rates to 20-years of stagnant productivity—while providing solutions for a major impending demographic shift. According to researchers, by 2050, Americans aged 65 and older are expected to increase by nearly 50% to about 82 million, creating unprecedented demand for healthcare services with fewer younger workers available to provide care.

"As the U.S. population ages, hospitals and health systems face an increasingly critical question: how can they hire, train, retain, and support enough employees to meet the rising demand for care, while still maintaining cost-efficiency and long-term financial health?" said Colin Pierce, Healthcare National Practice Leader, TIAA. "Tackling this challenge means we need to think differently. We should be exploring untapped talent pools, borrowing smart ideas from other sectors, and embracing technologies like AI. When we streamline workflows and cut administrative burdens, we free up healthcare providers to do what they do best—care for people."

The Cure for Employers

As health systems face this challenging environment, researchers suggest implementing a "three lens" approach to address workforce headwinds by asking new questions to work towards fresh responses:

Cross-Sector Collaboration Lens: Learning from and working with partners outside the healthcare sector, like higher education, which have important parallels, including a shifting demographic.
Work and Workforce Lens: Tapping into new and overlooked talent pools to create the right mix of roles, skills, and teams, while enhancing the workplace and the work experience itself by adopting technology.
Longevity and Aging Lens: Positioning for the growth of the intergenerational workforce and people changing careers.

Researchers say new approaches and innovations are critically needed as the sector continues to face staffing shortages despite adding 2.6 million jobs since the pandemic. According to the Bureau of Labor Statistics, nearly half of hospitals report registered nurse vacancy rates above 10%, with rural areas and certain states facing particularly acute shortages.

These staffing challenges create a troubling cycle within healthcare organizations. A 2024 TIAA Institute Healthcare Workforce Survey found that 40% of healthcare employees cite staffing shortages and a lack of resources as major problems, while 30% point to stress and burnout. Among employees at high turnover risk, these concerns rise to 63% and 56%, respectively.

Lifetime Income Solutions Support Workforce Stability

In today's challenging healthcare environment, providing more financial security through lifetime income solutions has become an increasingly important employee value proposition for attracting and retaining talent. Guaranteed lifetime income options can help employees build financial confidence and retirement readiness, addressing a key concern in an industry where only 52% feel fairly compensated.

"As healthcare faces unprecedented workforce challenges, employers who invest in comprehensive financial wellness programs that include lifetime income solutions will have a significant advantage in recruitment and retention," said Surya P. Kolluri, Head of TIAA Institute. "These offerings provide the income security that today's healthcare workforce increasingly demands."

The full report is available at tiaainstitute.org.

About the TIAA Institute

The TIAA Institute* is a think-tank within TIAA, conducting cutting-edge research in the areas of financial literacy and longevity literacy, lifetime income, retirement plan design and behavioral finance in the context of retirement. The Institute provides consulting services for higher education and the broader nonprofit sector. For more information, visit www.tiaainstitute.org

About TIAA

TIAA provides secure retirements and outcome-focused investment solutions to millions of people and thousands of institutions.ⁱ It paid more than $5.9 billion in lifetime income to retired clients in 2024ⁱⁱ and has $1.4 trillion in assets under management (as of 06/30/2025).ⁱⁱⁱ

About High Lantern Group

High Lantern Group focuses on strategic positioning for businesses, brands, and individual leaders by shaping the environment in which they operate. We specialize in early-stage strategic processes that provide the foundation for future success. To learn more, visit highlanterngroup.com.

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i.	As of June 3, 2024. Based on data in PLANSPONSOR's 2024 DC Recordkeeping Survey, #1 by total 403(b) assets and #1 by 403(b) ERISA plans.
ii.	As of December 31,2024, TIAA paid out $5.9B in total annuity income. This figure represents all annuity income, including guaranteed and additional amounts, for all of TIAA's annuity products.
iii.	As of June 30, 2025, assets under management across Nuveen Investments affiliates and TIAA investment management teams are $1,441 billion.