Help your employees to be retirement-ready

Improve productivity, reduce distraction, and increase employee engagement while reducing labor and benefits cost such as vacation days, 401(k), health and dental insurance. Increase retention rates for up-and-coming talent. When employees feel their employer cares about them, they are more likely to reciprocate.

Research indicates that a one-year increase in average retirement age results in:

An incremental cost of over $50,000 for an individual whose retirement is delayed. This represents the cost differential between the retiring employee and a newly hired employee.1

Incremental annual workforce costs of about 1.0%-1.5% for an entire workforce.2

For an employer with 3,000 employees and workforce costs of $200 million, a one-year delay in retirement age may cost about $2-3 million.3

Annual healthcare costs for a 65 year-old or older worker are twice those of a worker between the ages of 45 and 54 .4

In Addition:

  • 37% of employers say lingering older workers could clog up promotional ladders and hurt younger workers 5
  • 40% of employers are worried that older workers take large bite out of their company’s salary and healthcare budget because older workers cost more than younger workers. 6

Why Employers Should Care About The Cost of Delayed Retirement

By providing Financial Wellness and Retirement Readiness Resources for your employees, you elevate your company’s culture and show them that you are invested in their lives and in their future retirement.7

Money is the single largest source of stress for employees, ahead of work, relationships, and health.

80%

80% of employers say that retirement readiness and managing their employees’ retirements are important business issues.8

5%

Only 5% of employees feel that they are prepared for retirement.9

30%

30% of Americans report being stressed about money “constantly”- which means at work as well. Employers say that four in five employers are seeing their employees’ financial situation impact their work.10

Engage your employees with an excellent benefit.

Financial education not only helps employees when they need it most, but it also benefits the company directly through increased focus, better morale, more productivity and lower healthcare insurance premiums. If you are one of 80% of employers noticing that employees’ financial concerns are affecting them at work,
it’s time to make a difference. 11

Providing Workplace Financial Education

Employers have the unique ability to improve the mental health and overall lives of their employees by strengthening their basic financial literacy and comprehension.

Supportive Resources

Financial knowledge can help people make better investments, accumulate more wealth, and have a higher inclination to plan for retirement.

Long-term Loyalty

Providing a program to educate and assist your employees can help draw in new talent as well as increase long-term loyalty from valuable current employees.

1Represents the difference between the workforce costs of a retiree vs. an entry-level employee.  It is assumed that when an employee retires, an advancement opportunity is created such that all employees progress through the workforce (i.e., “move up a notch”), and an entry-level employee is hired. Why Employers Should Care About the Cost of Delayed Retirements, 2019 Prudential Financial, Inc.

2Represents the incremental annual cost of a one-year delay in retirement averaged over a five-year period. Why Employers Should Care About the Cost of Delayed Retirements, 2019 Prudential Financial, Inc.

3Why Employers Should Care About the Cost of Delayed Retirements, 2019 Prudential Financial, Inc.

4Why Employers Should Care About the Cost of Delayed Retirements, 2019 Prudential Financial, Inc.

5Willis Towers Watson Survey, published in Why Employers Should Care About the Cost of Delayed Retirements, 2019 Prudential Financial, Inc.

6Willis Towers Watson Survey, published in Why Employers Should Care About the Cost of Delayed Retirements, 2019 Prudential Financial, Inc.

7Why Employers Should Care About the Cost of Delayed Retirements, 2019 Prudential Financial, Inc.

8Willis Tower Survey

9Secure Retirement Institute study published in Employers Prepare for Higher Benefit Costs from Older Workers, LIMRA Secure Retirement Institute 2015

10Why Financial Education Is a Growing Employee Benefit, Integrity Data 2020

11Why Financial Education Is a Growing Employee Benefit, Integrity Data 2020

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