Is Delayed Retirement Impacting Your Bottom Line?

OCTOBER 5, 2021

Americans are living longer than ever before — about 30 years longer, on average, than a century ago — so the risk of running out of money in retirement is very real.

Employers are coming to grips with this problem and are starting to understand that the financial wellness of their workforce — or the lack thereof — has a direct impact on productivity in the workplace and on the organization’s bottom-line results.

Research shows that Americans are struggling with their personal finances:

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of Americans feel “very” or “somewhat” anxious about their financial situation

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Only 27% of working adults are on track to retire

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62% of working adults plan to continue working in retirement

When Workers Are Financially Stressed, Everyone Pays the Price


62% of Americans live paycheck to paycheck
22% of workers have dipped into their emergency savings
69% of Americans say they have less than $1,000 in a savings account
49% of employees believe they’ll need to tap their retirement plans prior to retirement


43% of workers spend time on their personal finances while at work
55% of human resources professionals surveyed saw an increase in 401(k) withdrawals
Increased absenteeism (47%) and healthcare claims (41%) are two ways financial stress can affect an organization
For every dollar saved for retirement, at least 20 cents is withdrawn too early

Retirement Readiness: Not Just an Employee Issue, But a Business Issue

A workforce that is financially unprepared to retire can impact a business in a wide variety of ways. It is estimated that employers spend over $50,000 per employee each year the employee delays retirement. These costs include: 

  • Potentially higher labor costs
  • Increased healthcare premiums
  • Lower productivity due to financial stress

The long-term financial impact to your organization of delayed retirement can be significant.

Estimated Cost to Employers of Delayed Retirement

100 person company with 3 employees delaying retirement:
1 Year = $150K; 3 Years = $450K; 5 Years = $750K

1,000 person company with 30 employees delaying retirement:
1 Year = $1.5M; 3 Years = $4.5M; 5 Years = $7.5M

10,000 person company with 300 employees delaying retirement:
1 Year = $15M; 3 Years = $45M; 5 Years = $75M

Given the implications, employers feel an even greater responsibility for their employee’s retirement readiness: 80% feel extremely or very responsible for helping employees prepare for retirement, compared with 22% in 2012. And 83% of employers now believe that employee financial wellness programs and tools help create a more productive, satisfied and engaged workforce.