HR staff may wish to recommend offering employees set to retire the opportunity to continue with part-time hours should they wish, which could aid talent management and also reduce the risk of such workers developing health problems later in life.
A recent study from University of Maryland has revealed that people who work part-time in jobs related to their previous careers have better mental health than those who are fully retired.
Furthermore, those who stop working completely on retirement are at risk of health problems, including heart attacks, cancer and other major diseases.
Commenting on the research, Andrew Harrop, head of public policy for Age Concern and Help the Aged, said working later in life can be "highly beneficial".
"Having a job not only keeps the body and the mind active – reducing the risk of dementia – but also offers opportunities to socialise and keep relationships fresh," he added.
Mr Harrop noted that people should be free to choose when they complete their working lives.