By 2030, all Baby Boomers in the U.S.—those born between 1946 and 1964—will have turned 65, with about 11,000 of them coming of age every day until then.1 But as these workers make the transition to retirement, one concern that’s top of mind for many is how they will obtain and pay for health care. “People are generally a little uncomfortable thinking about health care in retirement because they are going into the unknown, it’s complex, and people fear doing it wrong and paying huge penalties,” one benefits leader said. “It’s important to find a way that makes it simple for people to understand and less scary.”

When employees don’t see a sustainable path to pay for health costs, they may delay retirement.2 Nearly one in five reported that they had done so to keep their insurance, which can hinder new recruitment and increase overall employer health costs.3 The question for employers is no longer why they should support employees in the transition to retirement, but how they can best smooth the path forward. Here, we’ll examine the challenges workers face as they enter this new phase of life, and the ways that employers can help these employees make a soft landing into retirement.