Definition – What is retirement risk?
Retirement risk is the percentage of employees eligible in the organization that are eligible for retirement.
A high retirement risk means that a large percentage of the organization is likely to turn over in the near future.
Formula – How to calculate retirement risk
Retirement Risk = (Employees Eligible ÷ Total Employees) x 100%
A company has 7 employees eligible for retirement out of a total of 38 employees.
Retirement Risk = (7 ÷ 38) x 100% = 0.1842 x 100% = 18.42%