One employee benefit is keeping your older employees hanging on as long as they can.
The benefit? Employer-provided health insurance.
New research shows that 53% of workers plan to retire later than they originally had hoped so that they can receive health insurance through their job, according to a study by the Employee Benefit Research Institute (PDF). However, if health benefits were guaranteed upon retirement, 27% said they would retire earlier than planned, which is up from 15% in 2003, according to the study.
These results suggest that Baby Boomers, those in their 50s and 60s nearing retirement age, may be having the toughest time out of all generations in grim economic times. The New York Times recently came to that conclusion after interviewing a group of Baby Boomers that have been hit hard thanks to declining home values and interest rates on savings. Supporting their adult unemployed children and elderly parents only adds to the pressure.
Paul Fronstin, director of health research at the Employee Benefit Research Institute, says older workers who are too young to apply for medicare have a tough time finding private insurance. That helps explain older workers’ willingness to stay at a job.
Financial wellness is key
As we’ve mentioned before, there’s no better time than now to begin rolling out a financial wellness program. Employees trust their employers when it comes to handling money, but the problem is they don’t want to ask for help.
Employees who are less stressed about their personal finances usually equal productive employees.
What are your thoughts on the results of this study? Let us know in the comments below.
