What does it cost firms when people put off retirement?
Here’s a good reason to do everything you can to help workers hit their retirement goals: Employees who put off their retirement directly impact a company’s bottom line in a negative way.
In fact, it’s estimated that employers pay an additional $10,000 to $50,000 per employee for every year a worker puts off retiring.
These added costs come mostly from healthcare spending and higher salaries that longer-tenured workers earn compared to the newer employees who would replace them.
The best way to help them hit their goals: Constant education.
In fact, there’s a direct correlation between the number of retirement education sessions offered and employees’ 401(k) contribution rates.
Example: Research by Financial Finesse found that individuals who received retirement education annually had an average 401(k) contribution rate of 5.7%.
On the other hand, individuals receiving five or more education sessions had an average contribution rate of 11%.
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
Further Reading
Earned wage access, also known as on-demand pay, is being leveraged by your peers as a key recruitment and retention tool for workers who m...
The Department of Labor (DOL) is once again taking a neutral stance on offering a certain investment option to retirement plan participants...
Some of your year-end health plan responsibilities have lifted, thanks to eleventh-hour legislation from Congress. Plan sponsors that me...
There’s a Great Re-evaluation going on among your peers when it comes to health and well-being program benefits. That’s t...
Businesses are looking for competent number-crunchers. Some are even desperate to find talent. But the next wave of finance professionals i...
Sales tax compliance is a demanding job for finance teams like yours. For example, comparing the number of tax rate changes across the U...
