Working Past 65: The New Normal—and the New Risks for Employers

How to Support Post-Retirement-Age Employees Without Breaking Your Benefits Team

In today’s workforce, more than 20% of adults aged 65 and older are still clocking in—many full-time. For some, working longer is a personal choice. For others, it’s a necessity fueled by healthcare uncertainty, family caregiving responsibilities, or financial concerns.

This trend isn’t slowing down. The Bureau of Labor Statistics projects the number of workers over 65 will increase by more than 40% over the next decade—far outpacing younger age groups.

And while having experienced employees in the workforce can be a gift, HR and Benefits teams are now being asked to support a population facing increasingly complex personal and healthcare decisions.

Why Employees Are Working Past 65

For some, working longer provides purpose, routine, and financial stability. For others, it’s the only way to maintain employer-sponsored health insurance until they fully understand Medicare. Still others delay retirement to care for aging spouses, manage adult children’s needs, or avoid the unknowns of post-retirement life.

Common motivators for working past 65 include:
🩺 Healthcare uncertainty—fear of losing employer coverage or making a wrong Medicare decision
🏠 Financial concerns—rising housing, caregiving, and prescription drug costs
👵 Caregiver strain—employees caring for spouses or aging parents may need the flexibility and insurance access that employment provides
👩‍🏫 Identity and purpose—many employees are simply not ready to slow down

While it’s increasingly common, remaining in the workforce beyond 65 brings its own set of risks, for both employees and HR teams.

The Hidden Risks of Working Past 65

Working longer isn’t inherently bad—but failing to plan for the unique needs of 65+ employees can strain your HR and Benefits departments, increase liability, and reduce productivity.

Here’s what employers need to be aware of:

1. Medicare Confusion = Higher Costs + Delayed Retirement

Many older employees are unclear about how to transition from employer-sponsored health insurance to Medicare. This leads to:
❌ Missed Medicare enrollment windows, causing late penalties and coverage gaps
❌ Staying on the group plan longer than necessary, raising overall healthcare premiums
❌ Relying on HR for complex Medicare questions the team isn’t equipped to answer

👉 The Fix: Offer Medicare transition education well before age 65 to reduce confusion and unnecessary plan extensions. You’ll lower your costs and reduce HR stress.

2. Fall Risk & Workplace Health Concerns

Older employees face a higher risk of on-the-job injuries—particularly falls, joint pain, and chronic health complications. These incidents can drive up workers’ comp claims and lead to prolonged absences.

🧠 Cognitive health is another consideration. While many 65+ employees remain sharp and engaged, others may quietly struggle with memory or processing speed—especially if dealing with family health concerns at home.

👉 The Fix: Proactively support employees through health screenings, ergonomic improvements, and aging-in-place consultations. Empowering your older workforce to stay healthy helps everyone win.

3. Caregiver Burnout Among Your Most Experienced Workers

Many older employees are also primary caregivers for aging spouses, elderly parents, or even grandchildren.

This leads to:
🚨 Higher absenteeism
🚨 Increased use of FMLA or unpaid leave
🚨 Emotional exhaustion that spills over into work

The result? Disruptions in service, dropped responsibilities, and additional pressure on the rest of the team—especially if the employee holds a senior or mentorship role.

👉 The Fix: Educate employees about caregiving resources, respite planning, and emergency preparedness. Give them tools to balance their personal lives without sacrificing their work performance—or their well-being.

What HR Needs to Know: Working Past 65 Requires a Strategy

You don’t need to discourage employees from working past 65—but you do need a plan to support them and prevent burnout on your HR and Benefits teams.

Here are 4 critical strategies to help your company embrace the aging workforce—without breaking your infrastructure:

1. Start Medicare Transition Conversations Early

Medicare is confusing, even for educated professionals. And many HR departments assume employees will figure it out on their own or talk to a broker.

But brokers typically focus on policy pricing—not personal care needs.

💡 Instead, offer Medicare transition education 12–18 months before age 65. A good program includes:

• What Medicare covers (and what it doesn’t)
  
• How to coordinate with employer coverage
  
• Penalties for missing deadlines
  
• How healthcare decisions affect retirement timing

This takes the burden off HR while protecting employees from costly mistakes.

2. Offer Aging-in-Place & Wellness Planning

Employees over 65 are thinking about more than work—they’re thinking about where and how they’ll live as they age. They may be hesitant to retire because:

• Their home isn’t safe for aging in place
  
• They haven’t thought through long-term care
  
• They’re scared of losing purpose after retirement
  

Your job isn’t to provide all the answers—but you can give them tools to start planning.

💡 Offer educational sessions on:
🏠 Aging in place
🧠 Cognitive health & purpose-building
📋 Long-term care planning
📞 Emergency preparedness

These services reduce the chance of sudden crises—and help employees feel safe stepping into retirement when they’re ready.

3. Support Employees Who Are Caregivers—Without Overburdening HR

1 in 6 working Americans is a caregiver. And that number is even higher among workers over 60.

When employees don’t have caregiver resources, HR becomes their default support system—whether you’re prepared or not.

💡 Add caregiver-friendly programming to your benefits plan, such as:

• Emergency contact and planning templates
  
• Webinars on local and national caregiving resources
  
• Aging parent preparedness checklists
  
• Employee assistance programs (EAPs) tailored for caregiving stress
  

This will reduce absenteeism, FMLA overuse, and last-minute HR questions.

4. Make Working Past 65 a Win-Win for Everyone

Don’t just “allow” older employees to stay—support them in doing so successfully.

That means:
✅ Flexible scheduling for health or caregiving responsibilities
✅ Clear paths for mentorship or consulting roles
✅ Recognition and inclusion in strategic workforce planning

And most importantly—ensuring your HR and Benefits teams are supported through structured education and resources so they aren’t managing all this reactively.

The Takeaway: Support Your 65+ Employees—And Protect Your Team

As more Americans work well beyond traditional retirement age, HR’s role must evolve.

📌 Employees need more than just a 401(k) and COBRA packet. They need education on:

• Medicare and employer plan transitions
  
• Wellness and safety at work
  
• Caregiver responsibilities and resources
  
• Long-term care and emergency planning
  

Companies that don’t address these needs risk increased costs, delayed retirements, and burned-out HR teams.

But companies that do?
They become retirement-friendly employers, improve workforce stability, and retain experience without the chaos.

Ready to Protect Your Workforce—and Reduce HR Stress?

📥 Download our Retirement Readiness Assessment Tool to see how prepared your company is to support aging workers.

🤝 Or book a free 15-minute strategy call to explore how Intentional Aging can help you reduce workload, support employee well-being, and close critical education gaps.

Let’s make aging in the workplace intentional—not accidental.