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Q: We are working with our advisor to develop an educational program for our workers who are nearing retirement. Do you have any recent information regarding older workers who may be contemplating a delayed retirement?
A: According to new research from Boston College, older workers are delaying retirement and playing it safe amid fears about inflation, Social Security, federal debt, taxes and Medicare. The study team found that that group’s concerns about their financial future has risen sharply, with many respondents citing Social Security cuts and inflation as their greatest fears. About 20% of pre-retirees now expect to retire later than previously planned, whereas many others are shifting investments into safer assets or building larger cash reserves. You may want to consider reviewing the study and addressing those fears as part of your program’s curriculum.
Q: Our business is considering adding a cash balance plan to our benefits package. Do you have current data on the popularity of these plans?
A: Although traditional Defined Benefit plans have fallen out of favor due to several factors, employers still recognize the benefits of providing a plan that offers their employees greater security through lifetime income — but without the administrative complexity and funding risk. As a result, Cash Balance plans have become an attractive option. According to a new report from October Three, over the last decade, cash balance plans in the United States increased by nearly 70%, whereas traditional Defined Benefit plans fell by more than 50%. The health care sector accounts for nearly one-third of cash balance plans, followed by professional services and legal services firms, which together account for another 20% of cash balance plans.
Q: Are there any current studies that evaluate the employer cost of a delayed retirement?
A: Delayed retirement is a popular topic this quarter! New research from Principal finds that delayed retirement costs employers an average of $75,000‒$126,000 per employee per year, varying by industry. At the same time, projections show a 28% increase in employees age 65+ by 2033 — amplifying workforce cost pressures. The survey notes that because delayed retirement costs vary widely by industry, proactive plan design is essential. Leveraging automated features can help manage expenses and help employees stay on track to retire on time.
Informational Sources: Center for Retirement Research at Boston College, “How Policy Risks Affect Retirement Planning for Older Americans,” (March 17, 2026); Kleiser et al., “2026 Cash Balance Plan Report,” (n.d.); Principal, “Navigating the Cost of Delayed Retirement,” (2025)
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©2026 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance, nor as the sole authority on any regulation, law, or ruling as it applies to a specific plan or situation. Plan sponsors should always consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.
This material is intended to provide general financial education and is not written or intended as tax or legal advice and may not be relied upon for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.