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The impact of the US retirement crisis on workforce mobility and corporate costs.
For HR Benefits managers, the "retirement crisis" is often discussed as a personal financial problem for employees. However, the reality is that the massive savings gap is rapidly becoming a significant operational and financial risk for your organization.
According to Pew Research Center, approximately 10,000 Americans turn 65 every day, creating a wave of potential exits that can either lead to healthy succession or, if financial barriers prevent those exits, a complete stagnation of your talent pipeline.
When your senior talent cannot afford to retire, it creates a bottleneck that impacts everything from healthcare costs to your internal talent pipeline.
Originally published: February 9, 2026
For a business, an aging workforce that wants to retire but can't is expensive. According to Savvly's employer insights, delayed retirement creates several "hidden" costs for the company:
The tools we've relied on for decades are not solving the longevity problem. Most current retirement tools track net worth (assets) but fail to solve for income sufficiency; ensuring money lasts as long as the employee does.
Retirees often plan for a 20-year retirement, yet actuarial projections show a healthy couple at 65 has a 50% chance of at least one spouse living 27 years or more. Without a solution for those "late-life" years, employees remain frozen in their roles out of fear.
The math for the average American worker is no longer adding up. The gap between what people believe they need and what they actually have has reached an all-time high:
This gap is driven in part by a lack of rigorous planning — only 52% of workers have ever actually calculated their financial needs. The rest rely on "gut feeling" targets that are frequently outpaced by inflation.
This isn't just a numbers problem, it's a psychological one. Today:
To address workforce mobility, employers need to look beyond the standard 401(k) match. The gap most plans leave open isn't accumulation. It's income past 80. When employees have a plan for the later decades, they can draw down their existing savings with more confidence and retire on schedule.
The result for HR:
For more on how retirement benefits affect workforce decisions, see how HR benefits influence employee retention.
Savvly's Longevity Benefit is designed to help investors build potential income at later life milestones. It is not insurance, not a guaranteed product, and not FDIC insured. Learn more at savvly.com/disclosures.
To learn how Savvly works as an employer benefit, visit savvly.com/contact-us.
The retirement crisis is no longer a distant social issue. It is a present-day HR challenge. By implementing longevity benefits, you can give employees a plan for the years beyond 80 while protecting your company's talent pipeline and bottom line.
Disclosures
The information on this page is provided for educational purposes only and is not intended as investment, legal, or tax advice. It is designed solely to illustrate how longevity-linked investment benefits may work under certain assumptions. Actual results will vary. All illustrations, examples, and case studies are hypothetical and are intended to demonstrate potential scenarios — not to predict or guarantee actual outcomes. They do not represent the performance of any individual investor, portfolio, or account.
Key Assumptions Used in the Illustrations
Life expectancy and mortality projections are based on the most recent Social Security Administration (SSA) tables available at the time of simulation.
In the event of death or early withdrawal, hypothetical scenarios assume that investors who exit early, or their estate in the event of death, may receive 75% of the lesser of the initial investment or current market value, plus 1% for each full year the account was active. Case studies assume standardized market growth of 8% annually and do not incorporate unexpected market volatility, inflation, changes in interest rates, or changes in an investor's personal circumstances.
Simulations may assume a 3% annual early withdrawal rate prior to payout or death. All figures shown are net of fees. No forecast, projection, or hypothetical return should be relied upon as a promise or representation of future performance.
Past performance is not indicative of future results. The 8% annual market growth rate used in illustrations is a standardized assumption for modeling purposes only and does not represent the historical or expected performance of any specific investment. Note that early or voluntary withdrawals by other participants can affect fund performance and the size of distributions, and that a higher-than-expected number of participants reaching payout milestones may reduce the per-participant benefit received.
Savvly's Longevity Benefit is not a bank product, not FDIC insured, not insured by any federal government agency, not a guaranteed or insured investment, and not insurance. Investment values may decline.
Savvly's Longevity Benefit may not be suitable for all investors. Eligibility to invest is subject to qualification requirements and not all investors will be eligible. Investors should carefully consider their investment objectives, risk tolerance, time horizon, and financial situation before investing. See savvly.com/disclosures for current eligibility criteria, fees, risks, withdrawal terms, and fund assumptions.
This content is published by Savvly, Inc. Savvly has a financial interest in the products described and this content should not be interpreted as independent financial research or analysis. Investors should carefully evaluate their own circumstances and consult a qualified financial professional before making any investment decision.
