1. Delayed retirement costs

Women are much more likely to delay or forgo retirement than men. Sixty-one percent of women age 50-64 indicated they plan to delay retirement vs. 45% of men. On top of that, the percentage of women ages 50 to 64 in the workforce doubled from 1950 to 2010, and researchers expect this trend to continue through 2020 as more women delay retirement.

This will put a major financial strain on employers due to the costs incurred whenever an employee delays retirement. It’s been estimated that an employee who delays retirement can cost anywhere between $10,000 to $50,000 per year in direct tangible costs, and on average, employees who delay retirement plan to do so for three years.

2. Higher Health Care costs

According to our latest study on financial stress, women are three times more likely to face overwhelming financial stress, a costly proposition for themselves and their companies from a health care perspective. With an estimated 60% of illness either directly or indirectly caused by financial stress, women’s financial stress has a direct impact on your organization’s health care costs. Over 200 studies—including an AP-AOL Health poll—have shown a direct link between financial stress and costly medical conditions such as high blood pressure, metabolic syndrome, and heart disease, among hundreds of other diseases and ailments.

3. Low Return on Investment Associated With Core Benefits

The gender gap in financial literacy limits employers’ ability to realize a strong return on investment from their benefits programs because women are less likely to take advantage of benefits, and less likely to understand how to effectively manage them to achieve critical financial goals. For large companies, this could mean millions of dollars going to waste. Studies show that benefits are among the top reasons that an employee joins or stays at a company, and that an employee’s level of engagement, job satisfaction, productivity, and performance is highly correlated with their appreciation of their benefits.

There are many tangible and intangible costs plan sponsors face brought on by the gender gap. The good news is there are ways to reach women with benefits education that motivates them to save more and change the way they manage their finances to meet important retirement and long-term needs. Next month I’ll share some of these best practices so you can help this demographic by providing benefits communication in a way they understand and will respond to. The benefits will be reaped by both your female employees and your company.