At a time when everything seems to cost a little more, employees may be hesitant to use health care services — especially if they do not know the cost beforehand. For many, cost can be a top barrier to accessing health care. In fact, 7.1% of Massachusetts adults avoided health care due to costs in the previous year, according to the 2023 America’s Health Rankings report.¹ While across the U.S., 43% of insured working-age adults with employer-sponsored health plans said it was very or somewhat difficult to afford their health care.²

People who do not pursue needed health care may run the risk of poorer outcomes that can exacerbate chronic conditions and may drive increased medical costs. Fifty-four percent of people with employer-sponsored coverage who reported delaying or forgoing care because of costs said a health problem of theirs or a family member got worse because of it.³

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.