With more individuals aged 50 and older choosing to remain in the workforce, whether out of desire or necessity, the importance of employee benefits is becoming increasingly apparent. Christina Matz, director of Boston College's Center on Aging & Work, emphasizes the need for this demographic to approach their benefits strategically and proactively, considering both immediate and long-term needs.
"While certain benefits may take on increased significance as workers age—such as those related to financial planning, health care, skill development, flexibility, caregiving support, and legal preparedness—these priorities are highly personal and depend on a variety of factors," Matz explained.
Understanding what your employer offers is key. Employee benefits can differ significantly from one company to another and often hinge on whether individuals are working full-time or part-time. Matz encourages older workers to engage with their company’s human resources team to explore all the benefits available to them fully.
Listed among the top concerns are retirement savings. According to the 2024 Workplace Wellness Survey from the Employee Benefits Research Institute and Greenwald Research, 69 percent of respondents expressed being "very concerned" or "somewhat concerned" about potential reductions or eliminations of retirement benefits from employers. Many are also stressed about adequately preparing for the future, with 48 percent indicating anxiety over saving enough for retirement.
Craig Copeland, director of wealth benefits research at the nonprofit Employee Benefit Research Institute, highlights the importance of employer-sponsored retirement plans, like 401(k) accounts, which often offer matching contributions. He advises employees, particularly those aged 50 and older, to contribute at least enough to receive the maximum match. This practice enables them to maximize their savings.
For individuals nearing retirement age, additional options like catch-up contributions can also alleviate some financial pressure. Eligible workers can contribute up to $7,500 more to their employer-sponsored plans or individual retirement accounts (IRAs). Even more enticing, the SECURE 2.0 Act, effective from 2025, will allow for "super catch-up" contributions of up to $11,250 for individuals aged 60 through 63.
Following up on retirement accounts, Copeland mentions health savings accounts (HSAs), as they may play a significant role too. If eligible through high deductible health insurance plans, workers should prioritize their HSA contributions once they have maximized their 401(k) matching. "There could be a trade-off there: Make sure you get the maximum 401(k) match, then make sure your [HSA] is funded, then go back to funding your retirement account," Copeland clarified.
It's also smart to seek guidance from financial advisors when structuring these complex decisions. They can provide personalized plans to align with individual goals and circumstances, especially as retirement looms closer.
Another key element to post-50 employment strategy involves the availability of financial and legal advisory services through vendors. According to Matz, employers may offer various support systems to help navigate life changes. Many companies provide legal benefits, including access to estate-planning services or consultations with legal professionals.
To put it simply, support such as this can be instrumental for older workers facing long-term financial decisions, preparing wills, or forming trusts to ascertain their legal or financial affairs are ordered well.
Considering these various aspects of working past age 50 and planning for retirement highlights the importance of being proactively engaged with employer benefits. Workers should remain vigilant about the options available to them, leveraging retirement plans, HSOs, and employer-provided resources to secure their financial future. The nuances of this process can vary significantly based on individual circumstances, but the underlying principle remains clear: older adults should maximize the resources at their disposal.
Therefore, whether approaching retirement or balancing work commitments alongside other responsibilities, there exists ample opportunity to develop effective strategies for both employment and retirement planning. Workers aged 50 and older will do well to stay informed, consult professionals, and understand their unique benefits as they transition toward retirement.