The U.S. workforce is getting older. By the year 2024, 25 percent of American workers will be over the age of 55, and a third of those employees will be over the age of 65. Declining birth rates and higher life expectancy are contributing to the rising numbers of older Americans in the workforce, but there is also something else: retirement. More Americans are working longer to prepare for rising retirement costs, largely driven by health care spending. It's estimated that the average American couple will need $285,000 for medical expenses in retirement, and that's excluding long-term care.

These rising costs are not only falling on the employee, but also on their company. According to a report by Prudential Financial, older workers unable to retire cost employers up to $50,000 a year – this includes the difference between the salary of an older worker and hiring a younger one. Further, annual health care costs for a 65+ year-old worker are twice those of a worker aged 45 to 54.

With this in mind, benefits managers need a strategy and plan in place to care for their older workers so they can stay healthy and make a timely transition into retirement. Here are three ways benefits managers and HR leaders can prepare.

Engage older employees in their health

Engagement is crucial to health care, and benefits managers who are taking an active role in preserving the health of their employees have a better chance at achieving positive and scalable outcomes. This is especially true for their older employee population, as people experience a higher chance of health complications as they age. But, preventive services and catching conditions and diseases early can help. For example, doctors often recommend that seniors get cancer screenings on a regular basis, but it can be a challenge to get them to follow through.

However, the solution might be just motivating and engaging them; research has shown motivation is a key barrier to healthier living. Building a culture of wellness in the workplace promoting healthy food options, increased physical activity, opportunities for socializing and connection, and appropriate life balance — can help to reduce the number of health issues and related absences, which could force them to dip into retirement savings.

Making clear the value of having a high quality primary care provider is integral to higher completion of preventive services and better cost-effective management of chronic conditions. And finally, something as simple as flu shots are important in preventing possible serious illness especially for older workers. The seasonal flu can put older employees in the hospital for days, which is not only a serious health risk, but also a huge cost burden for employers.

Help employees understand health care costs

Financial education is also essential to helping your workforce prepare for retirement, and an important part of a culture of wellness. Employees can expect out of pocket expenses to grow as they age, because of the fact they are older and will need to spend more money addressing illnesses or other health conditions. After years, sometimes decades, of dedicated service, benefit managers owe it to their employees to have honest conversations with retiring employees' regarding their health care plans leading up to and after retirement. Do they have a support system of family or friends to support them if they develop a medical condition? If not, do they fully understand their own financial responsibilities for care after they retire?

When employees hit age 65, they are eligible for Medicare. Like many other pieces of our health care system, Medicare can be confusing and daunting. Older employees will appreciate help in navigating the sign-up process. In fact, a poll by the Nationwide Retirement Institute found that 70 percent of respondents said they wished they better understood Medicare coverage. Many employers will often consider bringing in Medicare consultants or advisors to discuss options. There are several different kinds of Medicare plans, and depending on lifestyle and retirement plan, one could be superior to the other for a given individual.

Another potentially confusing moment for your older workforce may be the Social Security Full Retirement age, which has been raised to 67; this fact, combined with a decline of availability of employer-sponsored retiree health insurance, results in older employees putting off retirement until they are eligible for Medicare.

Educate about mental health risks

What employees might not understand is that with retirement, we've often seen an increase in depression and anxiety in the years after work. Suddenly not working every day can cause some people to question their sense of purpose, as they have worked their whole life to save money for retirement, and now here they are. But it's important to help them understand what they are "retiring into", rather than just what they are "retiring from," and the real benefits of retirement — one of which is time. Staying active in the community, such as volunteering in schools or at a local charity is one way to stay involved and motivated.

Benefits managers can have open conversations with their older employees to discuss the risks of depression in retirement, and the resources and communities available for new retirees. Perhaps consider holding a Community Needs fair where organizations seeking part time and volunteer workers come to the workplace and "recruit" soon-to-be retirees. This can be very validating for the older workforce and can help bridge this transition.

Retirement is a life event to celebrate, but can be daunting for an employee who has spent the last four or five decades of their life working. Employees don't need to be afraid of retirement, if they go into it armed with the appropriate education and resources to help them along the way. As a benefits manager, you can be an advocate in helping them understand what they retired into and what they can expect in this new chapter in their life.

Todd Thames, PT, MD, MHA, is senior regional medical director for Grand Rounds.

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Preparing for retirement: How benefits managers can help older workers

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