Some Americans are putting off their retirement due to rising living costs. A recent survey by the Nationwide Retirement Institute found that four in 10 older Americans were putting off retirement. This number has doubled since last year, where many respondents indicated they had been delaying retirement due to the COVID-19 pandemic. 

This is having repercussions across the American workforce as companies delay hiring due to high numbers of employees putting off retirement. One-third of private sector employers noted that delayed retirement was affecting their ability to hire new talent, while 34 percent said it was preventing them from promoting young talent within their companies. Employers also noted that delayed retirement was increasing the costs of providing health and benefit plans. 

Many employers are also seeing a direct impact on the well-being of their employees due to delayed retirement. Three in 10 noted that team morale was down, while 29 percent indicated that it was having a negative effect on employee mental health. 

Approximately 27 percent of employers have noticed workforce productivity on the decline and 22 percent said that it has negatively impacted the physical health of employees. 

"We're watching delayed retirements impact employers' entire talent lifecycle, and it may be unintentionally contributing to 'quiet quitting,’" said Amelia Dunlap, vice president of Nationwide Retirement Solutions marketing. "Employers may find themselves with a workforce that lacks motivation to go above and beyond, without the ability to reward employees for a job well done. Employers should look for opportunities to better support their older workforce as they near retirement."

Employees are also concerned about their long-term security. One in four Americans feel they are on the wrong track for retirement, and just six in 10 have a positive outlook on their retirement and financial investments. 

Two in three employees cite inflation as a top retirement concern, with workers aged 35 to 44 reporting in higher numbers than those 45 and older that they feel confused and panicked about their retirement plans and financial investments.

"Employers must invest now in solutions and benefits that help their employees enhance their financial security and give them greater confidence that they can retire on time," added Dunlap. "The private sector has an opportunity to invest in solutions that are already enjoyed by the public sector, such as in-plan guaranteed lifetime income solutions. Like pensions, they offer a steady stream of predictable income for life."