Joe Smolen of Empower Retirement outlines the benefits a good retirement plan brings to employees and employers.
In what ways are retirement plans improving?
Plan providers are actively investing in technologies, services, and support programs to fit retirement plans to the needs of the modern workforce. For example, since the Pension Protection Act of 2006, we’ve seen the rise of new features, such as auto-enrollment and auto-escalation of employee contributions.
Can a good retirement plan also help employers?
Yes, a retirement plan helps with being able to attract the best candidates to come work for you. These days, many workers are focused on their future needs, and knowing that they are working for an employer that’s offering a great retirement benefit is really attractive. Second, having a workforce with a high level of retirement preparedness is a sign of organizational health. Workers should be able to retire at the time of their choosing, and if an employer helps make this happen, employee morale is higher and people are happier.
How do employees benefit from a retirement plan?
From an individual’s point of view, having a good retirement plan means that, over time, one can create the financial security she deserves. This allows the individual to plan for her post-working life with confidence that she will have sufficient finances to see herself through retirement.
What advice would you offer an organization looking to improve its employee retirement plan?
Seek the services of a retirement plan advisor. There’s no question that the right advisor will have the skills and experience to assess your organization, understand the needs of the workforce, share thinking on best practices, and then help find the best plan provider with whom your organization could work.