Perhaps some older workers are focused oncontinuing their careers and not interested in retirement, whileothers may find themselves in a place of financial pressure tocontinue working. Photo: Shutterstock

About 13 million Americans will reach retirement age by 2024,but that doesn't mean these people will decide to leave their workand actually retire.

This new reality is something employers — 83% of whom have asignificant number of employees approaching retirement age,according to a recent Willis Tower Watson survey — are strugglingwith, as a growing number of their older workers are staying on thejob long past 65.

According to the same survey, 80% of employers see older workersas integral to the success of the company, but only 53% are awareof when their employees are planning to retire and only 25% have aplan to manage the timing of employee retirement.

The challenges here are supporting these older workers as theyfind themselves in a time of transition. Perhaps some older workersare truly focused on continuing their careers and not interested inretirement, while others may find themselves in a place offinancial pressure to continue saving. The good news is that yourbenefits client employers have an opportunity to assist both ofthese groups of employees, and ultimately demonstrate theimportance of talent to their organizations.

The method in this case is helping employees to understand theiroptions by providing them with valuable decision support tools. Howdoes an employer begin this process? Here are three steps:

1. Evaluate company demographics.

Having data on how many workers are at or nearing retirement agewill lay the foundation for creating an effective retirement planfor your whole organization.

2. Provide a wider selection of benefits.

Allowing employees to choose the benefits that meet their ownneeds can lower employer benefits costs and provide individualizedcoverage. Employers should understand that as employees age, theirbenefits' needs change. A benefits plan that evolves with employeescan help smooth the transition to retirement. One example of thisis beginning education about the value of Medicare with the help ofspecialized assistance. For some employees, Medicare may be abetter alternative at age 65, and provide them with savings toinvest in their retirement, rather than coverage through theiremployer plan.

3. Educate employees.

Employers should strive to actively improve every employee'sfinancial literacy and help them make smart financial decisionsregarding their personal income and investments, as well as theirhealthcare plan decisions. Informing employees about theirretirement savings and health plan options can give them a roadmapon how to plan for their future and assess their current financialsituation.

Unfortunately, Medicare is often overlooked, as many employersand HR professionals blindly assume that employer plans offer thebest and least expensive coverage. However, in many cases, Medicareis the more affordable, higher-quality choice. Medicare Part Bpremiums start at $135.50 and deductibles are competitivelylow — most under $200 — or cost nothingat all. With employer plans, 66% of workers are charged a copay for primarycare visits, but under Medicare, out-of-pocket costs aresignificantly reduced or nonexistent, according to the KaiserFamily Foundation. Medicare also has multiple plan parts thatemployees can pick and choose from — 80% ofemployers have just one — and covers 93% ofprimary care doctors.

This approach also benefits employers whose older workersvoluntarily leave employer health insurance. Health care plans areone of the most expensive costs for older workers and theiremployers — employers spend nearly $7,000 onsingle-coverage healthcare premiums, with many of them sharingthose costs with employees via high deductibles.

In following these three steps, employers can not only be betterprepared for when their employees eventually retire, they can alsoexperience substantial savings. Prudential Financial has found thatthe annual health costs of a 65-year-old are twice as high as thecosts for an employee between the ages of 45 to 54-years-old, whichexplains why Willis' survey found that 49% of businesses areworried that delayed retirement will significantly increaseworkforce costs over the next five years. Helping employees whochoose that option to voluntarily shift to Medicare lessens theimpact and allows employer costs to move in the oppositedirection.

Delayed retirement does complicate employers' health plans, butit doesn't have to compromise their bottom line. They can easilyevaluate company demographics, educate employees, and provide themwith multiple benefits options — especially whenHR seeks the support of a Medicare expert who can help olderworkers find the most affordable plan that suits their needs. Bylowering insurance costs and improving care, Medicare benefitsemployers and employees.

Tricia Blazier is director ofhealth care insurance services at Allsup.