Fast-Forward to a Financially Secure Workforce
June 8, 2022
Two years of economic uncertainty caused by the COVID-19 pandemic have been followed by inflation and rising prices for products and services. As a result, many people are struggling to save for retirement when faced with the more pressing priorities of paying for basic living expenses.
If your organization isn’t concerned, it should be. When employees struggle financially or don’t plan for the future, it can negatively impact your organization’s bottom line. Research shows that workers who are financially stressed are not fully focused on their duties and are more apt to have higher healthcare claims, absenteeism, reduced productivity and delayed retirement.
Employees who fail to retire at the expected age may remain on your payroll for several more years. Research conducted by Prudential in 2019 shows that for each year an employee delays retirement, the cost to an employer can be more than $50,000 per employee due to increased healthcare costs, lower productivity and higher salaries. For a company with 500 employees, the estimated cost is $2.25 million if only 15 workers delay retirement for three years.