More than half the UK workforce will be aged 50 or over by 2030, as more people delay retirement through choice or financial necessity. But, with the risk of health issues increasing with age, employers must adapt the benefits they offer to help these older workers stay healthy and productive.
Employers are alive to the issues associated with this shift in workforce demographics. A 2025 study by Canada Life, Building longevity-ready workplaces in the UK, found that 30 per cent of employers see the ageing workforce as a risk to their business over the next five years. Additionally, 50 per cent believe the shape of work will need to change to accommodate these older workers.
The statistics support their concerns. Hit 50 and the risk of health conditions such as cancer, heart disease, hypertension and type 2 diabetes increases. For example, Cancer Research UK data shows that cancer cases rise with age, with the risk starting to rise more steeply from age 50.
Given these risks, health is a key consideration for the older workforce. “Ninety percent of people hit the buffers of a medical condition before age 67 and one in eight employees leave the workforce due to ill-health,” says Colin Fitzgerald, distribution director, group protection at L&G. “It’s important for employers to look after this group of employees. Even with artificial intelligence, their skills and experience are incredibly valuable to a business.”
Insurance intervention
Group risk and medical insurance products have a key role to play in supporting the health of these older employees. Both help employees access support quickly, reducing the risk of a condition worsening and the individual leaving the workforce.
On group income protection, early intervention and vocational rehabilitation services help employees return to work quickly, with Group Risk Development (Grid) statistics showing that 68 per cent of newly absent employees were able to return in 2025. “These services focus on the needs of the individual,” says Fitzgerald. “They look at what’s affecting them and what would help them to return or stay in work.”
Medical insurance can also help to prevent older employees falling out of the workforce with insurers focused on enabling prompt access to treatment. Rich Glassborow, director of proposition, distribution and marketing at Axa Health, explains: “We’ve developed specialised pathways for conditions like cancer diagnosis and musculoskeletal issues, ensuring speedy access to care. This is crucial for maintaining health and productivity in an ageing workforce.”
Cost and cover considerations
As health risks increase with age, covering older employees can be a challenge. “Group risk products are inclusive,” says Fitzgerald. “As long as an employee meets the eligibility criteria, they’re in. Free cover limits allow a high level of cover without the need for any underwriting.”
Age limits can kick in on group income protection. Policies will run until state pension age, with some going up to 70 or 75. Limited term products, where benefits are paid for two to five years, can help to ease underwriters’ nerves.
Age limits don’t kick in for medical insurance. “We don’t have an upper age limit for new policies,” says Glassborow. “But, to better understand the needs and risks of our policyholders, new members from age 75 are required to declare pre-existing conditions at the start of their policy.”
Cost can be an issue. As claims increase with age, Debra Clark, head of wellbeing at Everywhen, says premiums do too. “The over-65 rate can be up to double the standard rate on a large corporate scheme,” she explains.
Offering a basic level of cover and the option to top up if they want richer benefits can help to take some of the financial sting out of insuring an ageing workforce. But, Lucy Pearce, distribution director at Brown & Brown and a member of the Association of Medical Insurers and Intermediaries executive, says employers still see the value. “It does get difficult to cover older people, especially
on medical insurance, but employers need to balance these costs with the benefits of retaining older employees.”
Prevention strategy
Insurers are also exploring ways to ensure cover remains affordable. Rather than suck up higher premiums, many are looking at prevention to help reduce claim costs. “The market has shifted, especially since the pandemic,” says Pearce. “There’s much more of a focus on prevention and long-term health.”
As examples, she points to more targeted screening with tests designed for different age brackets rather than a one-size-fits-all approach, and structured pathways for chronic conditions. “If an employee has back pain, they could be directed to a virtual physiotherapist who can give them exercises to fix the problem before it stops them working,” she adds.
Menopause is another area where medical insurers no longer point to the chronic condition exclusion. This can be a major drain on employers with research by Simplyhealth finding that 23 per cent of working women have considered leaving due to menopause or menstrual symptoms, with 14 per cent actively planning to quit.
To curb this exodus, product development in this space includes Aviva offering access to menopause-trained healthcare professionals, including up to six 30-minute consultations with a menopause-trained nurse; Axa Health providing a consultation with a GP; and Bupa developing a stand-alone menopause plan.
As well as targeting specific conditions, insurers also provide tools to encourage employees to adopt healthier lifestyles. These include apps to motivate and support on everything from exercise and nutrition to sleep; access to mental health counselling; and virtual GP and second opinion services. There’s room for improvement in this space too. Clark explains: “We’re starting to see more personalised coaching plans but it’s key to changing behaviours. The more an employee engages, the more the plan reflects
their needs.”
More than health
Insurers have also recognised that it’s not just health that can lead to the loss of an older employee. As an example, research by Carers UK found that 2.6 million people – equivalent to 600 people a day – have given up work to care, with people in the 55-59 age group most likely to find themselves with caring responsibilities.
Even if they don’t leave, worrying about their loved one can cause presenteeism. “We’ve added care concierge services to our products, giving employees free consultancy around the options,” says Fitzgerald. “People are time and knowledge poor when it comes to arranging care.”
Financial wellbeing is another area where support can be invaluable for older employees. Clark says: “Retirement is much less predictable now so any guidance is positive, whether that’s financial, will writing or mental health. There needs to be more support for people who want to do things differently.”
As the range of added-value services increases, employers face a challenge getting employees to use what’s available. Communication is key to ensuring the message gets out. “This is a massive part of the adviser’s role,” says Pearce. “Employers need to promote the health benefits and additional services they offer. A wellbeing calendar and targeted communications can help.”
Where an employer does gain traction with its health and wellbeing benefits, the results are significant. Research conducted by Grid found that 82 per cent of respondents agreed it made a financial impact to their business, with 29 per cent saying they saw a positive return on investment.
Offering health and wellbeing benefits that ensure employees feel supported and valued can also help an organisation retain experience. “Think about what motivates older employees to stay,” says Fitzgerald. “For many, it’s simply that good work is good for you. Having access to health benefits and support is part of this.”