Benefits Strategy for Older Workers
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The workplace is getting older. Is your benefits strategy keeping up?
As Canadians work longer, employers may need to rethink how workplace benefits support employees through every stage of their careers.
Cleveland Clinic and Manulife experts share how to adapt to this shift in the labour market.
Longer lives, less linear careers and later retirement are reshaping Canada’s workforce. Today, more Canadians are choosing — or needing — to work beyond what was once considered the traditional retirement age.
The shift is already showing up in the labour market. Statistics Canada[1] reported that in 2025, the labour force participation rate for Canadians aged 65 and older reached 15.2 per cent, representing almost 1.2 million seniors who were employed or looking for work.
Public pension timing may also shape retirement decisions for some employees. As the Government of Canada[2] notes, Canada Pension Plan payments rise by 0.7 per cent for each month they are delayed after age 65, up to 42 per cent at age 70. Old Age Security (OAS) payments[3] rise by 0.6 per cent per month after age 65, up to 36 per cent at age 70.
For employers, longer working lives raise an important and practical question: Do current benefits plans still fit the workforce they serve?
3 Takeaways for Employers
- Review benefits with longer careers in mind: Consider offering or enhancing coverage of virtual care, mental health services, chronic condition management, and prescription drugs.
- Improve benefits education and communication: Messaging that explicitly addresses older workers and explains how benefits apply to them can help increase awareness and utilization.
- Make prevention part of workforce strategy: Preventive health, flexible work, accommodation and early support can help employees stay healthier and productive for longer, while reducing disability claims.
The benefits that might need a second look
Many people in their 60s are managing one or more chronic conditions, according to Dr. Vipan Nikore, an internal medicine physician at Cleveland Clinic Canada, which is the medical director for Manulife Canada’s Group Benefits. This age group is also likely to be juggling caregiving responsibilities for aging parents, spouses or other family members.
“In contrast, younger employees may prioritize supports for other health areas such as mental health or family building,” says Dr. Nikore. “A wider range of ages in the workforce means a more diverse set of health and wellness priorities for employers to consider.”
Because many of these needs can span multiple decades, employers can build a strong foundation that supports employees throughout their careers. Rather than scrapping an existing plan and adding all new products and tools, Dr. Nikore recommends looking at enhancing existing areas such as prescription drug coverage, mental health support, virtual care offerings and chronic disease management.
Virtual care can be one part of the foundation. Some Manulife benefits plans, for example, include access to employee and family assistance program for mental health services in English and French and Maven Clinic for health concerns that may be prominent later in a career for late career health concerns for men and women, including menopause, sleep difficulties and more.
Prescription drug coverage becomes increasingly important for this age group, as people are more likely than their younger cohorts to be managing one or more chronic conditions. Enhanced plans for those medications could help, says Dr. Nikore.
Navigating the needs of employees ranging from their 20s to their 70s isn’t simple. “It can be beneficial to offer adaptable benefits, such as flexible spending accounts, that allow employees to tailor support to meet their unique health needs,” says Dr. Nikore.
While many employers already offer these tools and services, Jennifer Foubert, AVP and head of product and growth for Group Benefits at Manulife Canada, says benefits education is just as important – and it shouldn’t be one-size-fits-all.
"Communication that explicitly invites and includes older workers in wellness, health and digital care offerings can go a long way,” she says.
The role of prevention
One area that cuts across age groups is prevention. Traditionally, many benefits plans have focused on supporting employees when something goes wrong, says Foubert. Longer careers may call for a more proactive approach.
“For years, benefits plans were designed mainly to react when people got sick,” says Foubert. “And with an aging workforce, that approach simply isn’t enough.”
Dr. Nikore recommends employers look at adopting a prevention-focused policy to mitigate the impact of health risks, help build long-term resilience, reduce future injuries and lower the likelihood of chronic disease as people age. “As individuals work later into their lives, preventive health support provided earlier in an employee’s career can have long-term benefits for employers,” he says.
That preventive approach can take many forms, including vaccinations, preventive tests, reducing the impact of existing health conditions (such as musculoskeletal, cardiovascular or metabolic conditions, like diabetes) and supporting healthy lifestyle choices such as diet, sleep, stress reduction and exercise.
Employers can support prevention in practical ways. That might include providing access to dietitians, supporting smoking cessation programs, or encouraging the 150 minutes of moderate- to vigorous-intensity physical activity each week recommended by the Canadian Physical Activity Guidelines[1].
Healthy aging as workforce strategy
Supporting employees’ health as they age is also about more than just medical and practitioner appointments.
“Healthy aging at work means supporting employees so they can maintain their overall wellbeing as they continue working,” says Dr. Vipan Nikore of Cleveland Clinic Canada.
From a medical perspective, that includes supporting and optimizing their function and independence through regular screenings and chronic condition management, he says. From a workplace perspective, it can mean creating environments where people can contribute safely and meaningfully for longer. Dr. Nikore says flexible work, manageable workloads, psychological safety and opportunities to keep learning all play a role.
That broader view matters because a more age-diverse workforce can bring a wealth of experience and value to an employer, according to Foubert.
“Employees in their 60s and 70s are a critical source of experience and stability, often bringing deep institutional knowledge, client relationships and technical expertise that are hard and costly to replace,” she says. “The aging workforce is both a challenge and a strategic opportunity.”
What employers can review now
Employers don’t need to wait until a large share of their workforce is over 65 to act. They can start by reviewing plan design, benefits eligibility, disability coverage, accommodation policies, return-to-work programs and manager training through the lens of longer careers, suggests Foubert.
That review may also include practical workplace supports, such as flexible hours, ergonomic workstations and time for medical appointments.
“HR leaders should think about healthy aging as a workforce strategy rather than simply a healthcare or benefits issue,” says Dr. Nikore.
For employers, the next question is: As Canadians increasingly extend their working lives into their 60s and 70s, does your benefits program reflect the realities of a workforce that’s working longer than ever before?
The information in this article is not to be relied on for medical advice for specific situations. Individual circumstances may vary. Always speak to a medical professional for medical advice.
Cleveland Clinic Canada
Manulife is proud to have Cleveland Clinic Canada on board as Medical Director for our Group Benefits operations. Cleveland Clinic Canada has a wealth of global healthcare expertise and shares our goal to help Canadians live longer, healthier, and better lives. Cleveland Clinic is a nonprofit organization that has been at the forefront of modern medicine since 1921. In recent years, Cleveland Clinic has worked with progressive companies in Canada and around the world to prioritize the health and well-being of their employees, customers, and communities.