How to Help Your Employees Plan for Retirement
Only 18% of employees feel comfortable with their retirement savings funds. Employers can help their workforce feel more secure by implementing a few procedures that promote financial literacy and stability.
Educate Employees
It is important to begin planning for retirement as early as possible, so ensure your employees have adequate access to information that can help them towards their goals. Retirement and financial wellness education should be regularly covered in the workplace instead of just being an onboarding objective.
Employees, new and existing, should receive guidance to understand the following:
- Principles of saving/investing
- How to calculate retirement savings goals
- Available plans/Rollover options
Contribute/Match
Employers who want to attract and retain great employees will often provide 401k matching or profit sharing options. These encourage participation and can even determine how much an employee will contribute.
Employers receive their own tax benefits, while showing their employees they care about their futures.
Help Transition
Soon-to-be retirees may feel intimidated by leaving the working life behind. As their employer, know when to provide them with resources to help them gradually transition.
As workers approach retirement age, educate them about retirement income strategies, distribution options, Social Security/Medicare, etc.
Automate Enrollment
Automatic Enrollment increases the likelihood of participation and maximum savings. Most employers who automatically enroll employees will have them maximize contributions to better help them reach their goals more efficiently.
Get Feedback
Engage in discussion with your employees about their needs and expectations for the future. The more insight you have on your company’s culture, the better you will be able to satisfy them. Some questions you may want to ask include:
- Which benefits are most important to you?
- How satisfied are you with your current plan?
- Do you have a full understanding of your plan?
- Do you feel confident you can retire comfortably?
We know comprehensive retirement plans may seem expensive and overwhelming to the average business owner, which is why the Benchmark team will guide you through deciding the most effective long term plan for your business. Chat with our experts to begin working on your company’s competitive benefits package today.