The retention of older workers has become a key policy issue in European welfare states. Consequently, there is an increased focus on how lifelong learning, or continued competence development, can extend working life. This article explores the dynamics of competence development among employees aged 55 years and older regarding their learning practices and attitudes toward competence development, based on qualitative fieldwork conducted in nine governmental workplaces across Denmark. To gain a comprehensive understanding of the factors that influence willingness to participate in competence development, the article introduces the analytical framework “capacity for competence development” and highlights five factors that influence this capacity: time, economy, learning culture, energy, and purpose. The article argues that (non)participation in competence development is not static and is not solely the responsibility of employees or managers. Rather, it is co-produced by complex workplace dynamics, including policies, age stereotypes, as well as ways of organizing work and learning. In conclusion, the article emphasizes the potential for competence development and suggests that most employees aged 55 years and older want to participate but await the right circumstances. Their participation could be enhanced through an increased focus on the five identified factors in the capacity for competence development.