Worrying about retirement is your employees’ job, isn’t it? Although it’s definitely something you can’t do for your employees, and you can’t make them care, it’s important to encourage your employees to participate in the retirement planning process. You don’t want an older employee sticking around for longer than they want to because they can’t afford to retire. Not to mention, you can find and keep better talent when you offer retirement planning incentives!
The question is, how do you get your employees to take retirement planning seriously? You can:
- Offer financial planning services
- Offer a company retirement plan
- Generously match contributions
- Host a class
- Reevaluate salaries regularly
Offer Financial Planning Services
Saving for retirement means more than putting money into a bank account every month. Retirement accounts can guard your income against inflation, and they can potentially make you even more money when you invest wisely. However, knowing how much to save can be difficult to determine. Not to mention, figuring out what to invest in and how much can be difficult to figure out on your own.
Consider offering retirement planning services to your employees so they can speak with a professional about a strategy that will enable them to retire when they want. That might mean covering the cost of a consultation with a financial planner, or it may mean giving them paid time off of work so they can meet with someone to talk about retirement. When you provide employees with the opportunity to talk to a money expert, they will likely take advantage of it.
Offer a Company Retirement Plan
Employees have many opportunities to save for retirement on their own, but that doesn’t mean they do. It can be very difficult to figure out what kind of account to open, and it can be even more difficult to transfer money from your bank account to your retirement account when there are so many other things you would rather spend your money on.
Do your employees a favor and provide them with the ability to utilize an employer-sponsored retirement plan. Not only does it make it a lot easier for your employees to save money, it also comes with some tax benefits for your business.
Generously Match Contributions
When you do offer your employees a retirement plan, you should also match contributions. That means that when employees pay a certain amount into their retirement account each month, you will match that amount, essentially doubling their investment.
Because this strategy essentially provides employees with free money, they are more likely to open a retirement account and save as much as they can.
Just make sure you do your research when it comes to matching contributions. There are limits to what you can contribute to accounts depending on the type of account, and it can change from year to year. Know what the limits are and contribute that amount to give your employees the best chance of saving for a comfortable retirement.
Host a Class
Saving for retirement sounds simple, but it definitely isn’t. A whopping 63-percent of Americans are confused about 401k retirement plans! That doesn’t include the confusion surrounding other types of retirement plans, how investing works, and how to know how much you should save and when. With so much confusion, many people avoid saving for retirement until it’s too late.
Give your employees the knowledge and they will feel empowered to make decisions about their retirement. Host classes that educate employees on different retirement accounts, how the stock market works, and how much they may need to save and they will be more likely to stop putting retirement saving off until another day.
Reevaluate Salaries Regularly
At the end of the day, employees can only save for retirement when they actually have money to save. If they only make enough to live, they won’t have any left over to put into a retirement account. Even if they do save, they may not make enough money to save aggressively enough.
You should strive to pay your employees above-average salaries, which means reevaluating salaries regularly. Hand out raises each year and pay employees bonuses based on their performance or as a thank you for all their hard work. The more money they make, the more likely they are to put some of that money aside for retirement.
Caring about your employees means they are more likely to give their all when they’re on the clock. Part of caring about them means caring about their retirement with the things on this list!