Nearly 20% of Americans age 65 and over are still part of the work force. What does this mean for employers?
With the average retirement age expected to increase over the next several years, workers are delaying their retirement due to a lack of defined pension benefits, a rise in the Social Security retirement age, and the decline of employer-provided retiree health benefit programs.
These are not the only reasons to keep working, as many older employees keep working for financial reasons or to keep themselves busy.
This is a very current problem that needs to start driving businesses to rethink their benefits for elderly workers. Three areas to focus on are such:
1.Medical plans: Many employers offer just a high deductible plan for their workers and a Health Savings Account. Because of Medicare Part A being free, many seniors decide to enroll in this plan. However, the plan highly conflicts with HSA regulations and they are not allowed to contribute to their HSA account. Employers, instead, should offer a variety of plans for their employees, as to make it as easy as possible for them to keep working past normal retirement age.
2.Life and Disability Plans: These types of benefits are often overlooked. However, this impacts the individuals greatly as they grow in age. There are schedules that start to appear when seniors turn 65+ years old. Businesses should be constantly reviewing these schedules and adjusting them where necessary.
3.Wellness Plan Incentives: Older individuals tend to have higher health care costs, and employers could see an increase in their health benefit premiums. Implementing a Wellness Program for all of your employees could help to identify and manage any chronic health conditions.
Take the time to review your management practices and accommodate the aging workforce. Integrate the Baby Boomers with the Millennials and look for the potential to grow your business! (That sounds like another topic in itself!) Need some direction in your health care for aging workers? Give us a call – we are happy to help!