A growing shift is taking place in the U.S. workforce: retirement is becoming less predictable. According to the latest Principal Financial Well-Being Index, 69% of employers say they are seeing employees delay retirement because of financial security concerns. Among the factors contributing to those decisions, 71% of employers cite rising costs of living and inflation as a leading concern. Healthcare costs and concerns about outliving retirement savings are also influencing when employees feel financially prepared to leave the workforce.

The findings point to a broader change in how employees approach retirement. For many workers, retirement is no longer determined solely by age or career stage. The decision increasingly depends on whether their accumulated savings can support an uncertain future. Higher living costs, healthcare expenses, and longer potential retirement periods can all affect how much an employee needs to save and how confident they feel about stopping work.

This creates implications for employers as well. When employees remain in the workforce longer than expected, organizations may face changes in workforce planning, succession timelines, compensation structures, and talent management. At the same time, experienced employees can represent significant institutional knowledge that organizations may want to retain.

For employers and advisors, this makes retirement plan design an increasingly important part of workforce strategy. A plan should reflect the organization’s workforce, business objectives, and the financial realities employees are facing rather than relying on a standardized structure.

RetireBetter takes a customized approach to retirement plan design. Its 401(k) plans are built around a deep understanding of the client’s business and supported by a professional service team, giving organizations a retirement plan designed around their specific needs.

Different organizations may also require different plan structures. RetireBetter provides ERISA and Non-ERISA 403(b) plans for nonprofit organizations, designed to provide a cost-efficient retirement experience while accounting for the unique constraints of the nonprofit sector. Its 457(b) plans support government agencies, nonprofits, and certain qualified government contractors with flexible and compliant plan structures.

For business owners who want to build retirement savings beyond standard 401(k) limits, Cash Balance plans can provide significant tax advantages and allow substantially higher retirement contributions. RetireBetter’s actuaries work with businesses to develop customized funding methodologies based on their current and future needs.

Plan administration is another important consideration as retirement programs become more complex. RetireBetter’s Plan Administration service can reduce the daily administrative burden through either 3(16) fiduciary or non-fiduciary administration, helping plans operate smoothly while supporting both employer convenience and employee satisfaction.

The changing retirement landscape does not mean every employee will work longer. It means employers need to recognize that retirement timelines are increasingly shaped by individual financial circumstances. A thoughtfully designed retirement plan can give employees a stronger foundation for making that decision — while giving employers a more effective framework for managing an evolving workforce.

As economic uncertainty continues to influence retirement decisions, the most effective retirement plan is one designed around the realities of the people and organization it serves.

‍