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 recent 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.