June 2023: Plan to work past retirement age?
The trend of older people working past the traditional retirement age is expected to continue. The Bureau of Labor Statistics estimates that 13 million Americans aged 65 and older will be in the labor force by 2024. There are a variety of reasons people are working longer – some find they can’t afford to retire, some enjoy what they do for a living and some want extra time to build up their retirement savings. Click here to share this article with your employees so they can learn financial benefits, potential roadblocks and strategies to afford the type of retirement they want.
Will your employees’ retirement outlast their savings?
Whether someone is 25 or 55, it is vital to seriously consider a proper saving plan to allow for a comfortable and financially secure life after retirement. We understand it can be tempting to put saving for retirement on the back burner when there are other top-of-mind financial concerns like paying down existing debt, lack of emergency savings and inability to meet monthly expenses. But the longer your employees put off planning for your future, the farther they will fall behind. It’s never too late to start!
To be financially ready to retire, employees should SAVE ABOUT 11 TIMES their pre-retirement salary by age 65.*
Help your employees plan for retirement
We at USI Consulting Group (USICG) have a robust library of retirement and investment resources to help educate and assist retirement plan participants in managing their retirement accounts and setting a plan to reach their post-work life goals.
With the right strategy, your employees can help make sure their retirement savings last.
Simple steps employees can take to reach their retirement goals and the future they deserve.
If employees can’t tackle their short-term goals, they won’t be able to start thinking about retirement.
Key considerations when retiring to ensure financial security through the years ahead.
Leverage these resources to help your employees understand the importance of preparing for retirement and ensure they are participating in their employer-sponsored retirement plan and saving for their future!
Why should employers care?
A key component of achieving financial wellness in the workplace is making sure your employees are financially prepared to retire. Employers have begun to focus on employee financial wellness to better understand the barriers employees face in saving for retirement. If employees aren’t able to tackle their short-term goals (i.e., pay down debt, establish emergency savings, afford healthcare), they won’t be able to start to think about retirement.
Your employees may not be speaking up and requesting help, but they need a financial well-being program that does more than offer online retirement income calculators or sessions with investment specialists. Employees need a financial well-being program that helps them improve their ability to live within a budget, reduce debt and save for the future.
Helping employees improve their retirement readiness can also help mitigate the projected economic costs to your business. Our article, Is Delayed Retirement Impacting Your Bottom Line?, reports that employers spend more than $50,000 per employee each year an employee delays retirement. A workforce that is financially unprepared to retire can impact businesses in a wide variety of ways, including potentially higher labor costs, increased health care premiums and lower productivity due to financial stress.
How USICG Can Help You
USI Consulting Group has been helping employers enable their workforces to successfully plan and invest for retirement for over 45 years. To learn more about USICG’s solutions and how we can help you improve your employees’ financial security and retirement readiness, contact your USICG Account Manager or reach out to us at firstname.lastname@example.org.
* Source: T. Rowe Price, February 2023.