The Costs to Employers of Having Employees Who Are Unable to Retire
Answer: The biggest cost is when you have employees who want to retire but cannot. Those who genuinely want to work in their retirement years are probably a tremendous resource for the company in terms of their knowledge, experience and wisdom--- valuable commodities in any workplace.
However, those who do want to retire but cannot can cost the company dearly. It is nearly impossible to arrive at a set dollar amount, but you can at least get a better understanding of the costs by looking at the impacts in the following areas:
Your CFO could run the numbers associated with the increase in health care costs and potential layoffs in a bad economy. Performance declines are harder to measure, but they are often much more expensive over the long run as they compound over time and damage the culture of your organization and its ability to effectively compete.
About Financial Finesse: Financial Finesse was founded with a single mission: Provide people with the information they need to become financially independent and secure. Today, we are the leading provider of unbiased financial education for large companies and municipalities. Our financial education services are fully integrated programs designed to address the strategic goals of the organizations we service and are delivered by on-staff Certified Financial Planner™ professionals as an employee benefit. If you are interested in learning more about workplace financial education programs, contact one of our education consultants at AskFF@financialfinesse.com.
The Ask Financial Finesse Q&A service is designed to provide general information on trends and developments in workplace financial education programs and participant education strategies. Due to the complex nature of financial benefits and/or workplace financial issues, the information contained in this document is not to be construed as advice.