An information handling system may include a retractable touchpad button bumper assembly, including touchpad buttons configured to move between first and second touchpad button positions dependent on whether a lid portion of the information handling system is open or closed with respect to a base portion to which it is rotationally coupled. When the lid is opened, the touchpad buttons may be lowered into their first touchpad button positions, where the touchpad buttons lie in a recess in the base portion and operate as input devices for a touchpad. When the lid is closed, the touchpad buttons may be raised up to their second touchpad button positions, which are higher than their first positions relative to the base portion, and may serve as a bumpers between the base portion and the lid portion. The assembly may receive a signal indicating the lid state from a proximity sensor circuit.