As an employer, it’s your responsibility to assist their employees with retirement planning. Employees feel you care for them when you help them. As a result, productivity and your bottom line increase significantly. Not only that-these features will make your business a preferred workplace for top talent.
Sadly, a lot of employees have trouble retiring because they don’t have a choice. Some can’t afford retirement and continue to work even past their retirement age.
So, how do you assist your employees with their retirement plans? Here are some tasks you need to check off.
Give a Glimpse of the Future
Many employees think that social security benefits alone can help them through retirement age. Unfortunately, these benefits won’t be enough, especially if employees have underlying health conditions. Costly healthcare and medicines will be their most significant expenditures when they retire.
So, help your employees in using a tool that computes their social security benefits when they retire. What are these tools? Your employees can either use a quick calculator, a downloadable tool, or a comprehensive calculator.
A quick calculator enables employees to compute for projected benefits.
On the other hand, the comprehensive calculator is linked to the employees’ SSA, and it’s more detailed than the quick calculator.
These tools require providing sensitive personal information. If your employees don’t want to give these details, they can use a downloadable tool from SSA’s website or your retirement plan vendor’s site.
Educate Your Employees
Sometimes, employers assume that many employees know what to do when it comes to their retirement. If they do know what to do, they aren’t decisive enough. Most of the time, employees don’t bother to take any action about their retirement plans.
Before it’s too late, educate your employees about the best retirement plan available for them. Discuss other ways to become financially secure at retirement age. An example is getting a Glendale retirement benefits insurance.
Also, education in a retirement plan is a two-way process. You educate your employees and at the same time, you educate yourself. Financial literacy can make a difference in your employees’ life. If they are financially literate, it doesn’t hurt to remind them of their long-term goals through in-house training.
Automate the Process
When you have a voluntary system for retirement planning, not all employees participate. Reasons may include not enough net pay or simply not understanding the significance of saving up early for retirement.
The best way is to create automated and mandatory participation. Included in this system is the gradual increase of contributions in the retirement plan.
To make this successful, you have to discuss the pros and cons. Again, we go back to educating them about a retirement plan, social security benefits, and insurance.
Expect resistance and skepticism about this automated participation. After all, you’re taking away a chunk of participants’ spendable income. To solve this, we go to the next task.
Communication can solve your dilemma of resistance and skepticism. Plus, your employees will feel they matter to you. A simple question of how they are doing and if they need help goes a long way.
Customize your way of communication with your employees. Talk to your employees individually, and know their health conditions and financial struggles. Discover what their plans would be for retirement.
Most of the time, these financial struggles are rooted in their inability to pay off existing debt or a propensity to overspend. From here, you can devise a plan with your retirement plan vendor.
Assess Your Employees’ Needs
Some employees are well-off, while many employees struggle to get through from paycheck to paycheck. You can assess employees who need help by communicating with them. Alternatively, you can observe how your employees live and spend their money.
Are they making wise decisions financially? Have you seen them prosper during their tenure with you, or are they in a financial rut? These are a few questions you and your employees need to answer.
As an employer, you don’t have to babysit or spoon-feed your employees on what to do. Your goal is to give your employees a fighting chance, an opportunity to retire comfortably.
Most importantly, you want them to retire early because the truth is it’s expensive to maintain employees for more than 15 years. The longer they stay with you, the higher the cost.
Ready to create a retirement plan for your employees? Get a schedule, and let’s talk about your employees’ needs based on the capacity to pay.
About Arroyo Insurance Services
Arroyo Insurance Services was officially established in 1986, but we have roots dating back to before 1950. One of California’s leading client-oriented and independently owned agencies, we have over 140 employees with a combined experience of over 450 years, spread across 11 locations. We are committed to providing the best insurance and risk management services at the most competitive premiums, and backing it with hands-on service tailored to our customers’ needs. For more information on how we can mitigate your risks, contact us today at (877) 220-4769.