When employees aren’t ready for retirement, it can affect your business. Employees who aren’t ready for retirement have increased healthcare costs and salaries.
It’s time to take a better look at your retirement plan if you want to help employees prepare for the future.
Other Debts Come First
Employees struggle to save for a variety of reasons. Namely, debt and daily financial concerns outweigh their ability to save.
Most Americans carry some form of long-termdebt. And for many, they’re unable to cover even small emergencies.
Daily financial stressors prevent them from saving in your retirement plan.
Increased Compensation Costs
Tenured employees typically demandhigher wages. The larger your workforce, these increased compensation costs can add up.
Older employees have higher healthcare costs as well.
How Much Employees Are Saving for Retirement
How much employees save affects how soon they’re able to retire. When employees have more saved, they can retire earlier. If they’re not saving properly, their timeline getsdelayed.
Unfortunately, many employees aren’t even close to being ready for retirement. 30-somethings have just over $10,000saved and most 60-somethings only have 10% of what they need.
Employers can save hundreds of dollars per year by helping employees retire on time.
Revisit Retirement Programs
The best way to help your employees save for retirement may not be what you’re thinking.
If you help employees address other common stressors, they can focus on saving. When employees pay down debt, they can put more money toward the future.
Relevant third-party benefits and education can help employees better navigate their path. Financial wellness benefits can guide employees to make smarter financial decisions. Over time, they’ll be better on track for retirement.