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Ageing population is one of the demographic processes typical for contemporary society. Both nations and organizations should therefore recognize the significance of age management, in other words, of taking care and empowering older employees to add value. The paper deals with age management concept both on theoretical and empirical level. In the theoretical part, age management is explored through definition, stimuli, participants and activities of age management, as well as explication of early retirement factors. Empirical part of the paper presents research results about the potential early retirement factors of 182 respondents. At the end of the paper, based on both theoretical and empirical findings, athe model for effective age management in Croatian organizations is proposed. [ABSTRACT FROM AUTHOR]