Currently, nearly 40 million employees in the U.S. do not have an employer-sponsored retirement plan, according to the U.S. Department of Labor. Without retirement savings, employees risk running out of money in retirement. Retirement plan consulting involves setting retirement income goals and making important decisions to achieve these goals. An employer-sponsored retirement plan can provide employees with financial security and employers with certain tax and recruitment incentives.
How Retirement Plans Attract Premium Employees
Employer-sponsored retirement plans are often offered to employees at an affordable cost and may include options like 401(k)s or health savings accounts (HSAs). One of the biggest benefits of offering a retirement plan to employees is the ability to attract premium employees. Qualified job candidates look for certain benefits during the job search process, such as access to health insurance, paid time off, life insurance, vision, dental and retirement accounts. By offering new employees a comprehensive benefits plan that includes an attractive retirement savings account, employers are better equipped to bring in individuals who are experienced and highly qualified for the job.
Working Toward The End Goal
When planning for retirement, it is important to have an end goal in mind. There are both practical and psychological reasons for this. First, having a goal in mind for how much money will be needed to live comfortably during retirement allows employees to plan accordingly. With a set number, employees can determine how much they will need to save each year to reach their end goal. From a psychological standpoint, looking at the big picture can help employees stay on track with their goals. As goals can change over time, it is necessary to review retirement goals on a regular basis and adjust the numbers as needed.
Top Talent Seek Out Good Benefits
The average employer will interview between six and ten candidates for a position, according to Career Sidekick, and a select few of these candidates may go through an average of two to three interviews before receiving a job offer. To help ensure that these candidates are qualified for the job, it is important for employers to offer certain incentives that make the job stand out among competing offers. Building a competitive benefits package that includes a retirement plan is critical for businesses that desire a strong team of talented workers.
Retain Competent Employees
In a survey, 51 percent of employees stated that they joined their current employer largely due to the retirement plan being offered. Not only does offering retirement plans show employees that the business cares about their financial well-being, but also that they are committed to maintaining a competitive benefits package. Attractive retirement plans can help employers retain competent employees, especially when a retirement plan is coupled with a match program that allows workers to build up their funds even faster. Employees who feel their employer is invested in them are likely to remain productive and engaged with the company.
Consider Retirement Plan Consulting
A retirement plan is an effective way for employers to reward employees with an important benefit, while also delivering excellent tax advantages to the business. With help from a reputable benefits plan consultant, employers can determine the proper strategy for recruiting and retaining top talent by building a competitive employee benefits package that includes perks like retirement accounts and other ways to save. Today, there are several advantageous employer-sponsored retirement plan options to choose from, such as 401(k) plans, Roth 401(k) plans, 403(b) plans, SIMPLE plans, SEP plans, and defined benefit pension plans.
When businesses reach out to employee benefits consultants regarding retirement plans, they can expect to receive customized advice and broad financial insights from an industry expert. This customized consulting process incorporates the unique needs and budget of the business, as well as factors like business size, the number of employees, and benefits offered by local competitors. With this information, a benefits consultant can recommend a plan that reflects the best interests of the employer, employees, and the business as a whole. Retirement plan consulting also help businesses learn how to effectively manage their retirement plans and ensure that the plan meets certain minimum standards set by ERISA.
Work with BenefitCorp
All too often aging employees leave their jobs without enough money to support them through retirement. By taking advantage of an employer-sponsored retirement plan early on, employees can start building a nest egg as a means of financial security during their golden years. Offering a retirement plan to employees can also benefit employers in several ways. In addition to attracting and retaining employees, employer contributions to a retirement plan are tax-deductible and assets in the plan grow tax-free. For more information about the importance of having a retirement plan consulting expert or to speak with an experienced benefits consultant, contact the expertsat BenefitCorp.