Adapting to an aging workforce: Strategies for employer success

Currently, nearly one in four workers is over the age of 55 — a demographic shift major implications for benefit strategy and workforce planning. Many employees are also dealing with caretaking for their elderly parents.

Key data points on an aging workforce

• Labor force share (age 55+): Increased from 12% in 1990 to 24% in 2023.
• Workforce participation (age 65+): Reached 20% in 2022 — the highest on record.
• Delayed retirement: Economic factors and longer lifespans are pushing retirement ages higher. The average medical retirement age has gone from 62 to 65 in the past ten years.

Impact on medical and pharmacy cost trends

• Higher healthcare utilization: Older workers have higher rates of chronic conditions such as diabetes, hypertension, arthritis and cardiovascular disease. This increases demand for medical services and specialist care.
• Escalating pharmacy spend: Utilization of maintenance medications, biologics and high-cost therapies — including those for osteoporosis and inflammatory conditions — continues to rise.
• Productivity and absenteeism: Increased medical appointments, prolonged recovery periods and functional limitations contribute to higher absenteeism and potential productivity losses.

Strategies to support an aging workforce

1. 01

   Health and benefits design

   • Offer targeted wellness and chronic condition management programs (e.g., cardiovascular, diabetes, menopause, musculoskeletal).
   • Strengthen specialty and pharmacy benefits management.
   • Expand access to care navigation, nurse support and virtual care.
   • Increase preventive health campaigns, including screenings for cancer, osteoporosis and heart disease, as well as vaccinations (flu, shingles, RSV, pneumococcal, Tdap).
   • Offer programs to assist employees in caretaking for their elderly parents, much as many companies offer support for childcare.

2. 02

   Workplace flexibility and retention

   • Implement phased retirement, part-time and consulting roles.
   • Promote mentorship and knowledge-transfer programs to retain institutional expertise.

3. 03

   Work environment and safety

   • Conduct ergonomic assessments and invest in injury prevention.
   • Provide reasonable accommodations to reduce strain and support physical capability.

4. 04

   Financial wellbeing and retirement support

   • Offer retirement planning resources and catch-up contribution options.
   • Support navigation of Social Security, Medicare and long term financial planning.

The aging workforce is reshaping employer responsibilities across benefits, wellbeing and talent management. By investing in proactive health strategies, flexible work design and financial support, you can offset rising costs while harnessing the knowledge, loyalty and stability that older workers bring — strengthening organizational resilience for the future.

Author

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Susan Mueller, MD

Senior Director, Health Equity & Wellbeing

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