Retirement planning has become an increasingly important priority for almost every employee. Traditionally, older generations have driven the conversation around retirement planning, for obvious reasons. But in today’s world, retirement planning is just as important to younger generations. According to a recent study, three out of four (76 percent) people say that retirement benefits offered by a prospective employer will be a major factor in their decision on whether to accept a future job offer.
Whether your employees are looking for help easing into retirement in the next couple of years, or they’re 40 years from it, one thing is clear: Today’s workforce is looking for help from employers when it comes to retirement planning.
4 Ways to Help Every Employee with Retirement Planning
What’s the best way to help every employee with retirement planning, regardless of their life stage? Here are a few keys:
- Help employees assess their current readiness. Knowing when you are financially ready for retirement is not as clear-cut as it used to be. The first step in helping an employee with retirement planning is to evaluate their current situation. One way to do this is to offer your employees confidential evaluations through a third party.
- Customize your education and communication. Because there is such a vast difference between the generations in what is required for retirement, it’s important to help employees understand what is most relevant for them. For example, employees over age 50 may want to focus on catch-up contributions. Younger employees may benefit from more information about matching contributions.
- Automate contributions. This is one of the simplest and most effective ways a business can help employees with retirement. Create a plan that makes enrollment automatic, along with automating the increase of contributions at specific intervals and the selection of default investments.
- Offer alternative benefits. Even if you don’t have a formal 401(k) plan, there are alternative benefits you could offer employees when it comes to retirement planning. Consider bringing in partners from local banks or financial institutions to help employees set up Roth IRAs, college savings accounts, or any other savings plans employees are eligible for. Profit sharing plans are another alternative you could consider.
Helping employees retire on their terms is something every business should strive to do. But, it isn’t always easy. These steps can help you lay out a path that makes it easier for employees to take the right steps, regardless of their life stage.
Want to learn more about how to effectively help your employees with retirement planning? We’d love to help. Whether you’re struggling with a specific issue or wanting to evaluate your employee benefit plans, our team is happy to help answer any questions you might have. You can connect with us anytime here.