Your older employees may want to prepare for retirement, and you can help them get there with a good plan and some support. Planning for retirement is a marathon, not a sprint. The right retirement services consider the long-term nature of planning and saving for this life stage, especially for a generation of workers who view retirement accounts as savings they can borrow against.
Help Them Prepare for Retirement
Here are some tips for helping your employees prepare for retirement.
Offer Automatic Enrollment in Retirement Services
Employers can offer automatic 401k enrollment with contribution matching to encourage employees to start building those funds for the future. Incorporate default contribution levels, automated contribution escalation services, and easy fund management tools to facilitate participation.
Provide Support for Preserving Previous Funds
New employees often have existing 401k accounts or other retirement funds from a previous employer. Simplify the rollover process so they can preserve those funds as efficiently as possible.
Encourage Retirement Prep Programs
In many cases, programs for retirement preparation are the most effective means for helping employees start saving and planning for the future. Sometimes the big picture needs to be more abstract for employees to appreciate the benefits without clear guidance.
Establish Assessment Support
Periodic assessments of your retirement funds can help you determine which employees aren’t participating, which funds are not being managed as effectively as they could be, and other employees who may need more support to build their retirement savings. Helping employees prep for retirement often means assessing performance and providing improvement guidance.
Target Your Retirement Communication
When distributing information about retirement planning, target your communications for employee life stages. Older employees can benefit from information about catch-up savings, aggressive investments, and rapid fund growth strategies. Younger employees should receive communication that stresses the importance of retirement planning and shows them how simple steps can lead to financial security later.
Provide Big-Picture Retirement Services
One of the challenges for many employees is understanding how different funds and resources work together. Many employees may have other retirement funds, including IRAs, employer-based retirement savings, or personal savings accounts. Their retirement plan should focus on the big picture, including their savings strategies and resources.
Some employers offer basic retirement planning information and guidance at hiring and then make other services available only if the employee actively seeks them out. Avoid pitfalls by actively engaging with your employee retirement planning and fund management. Routine check-ins, email follow-ups, and consistent communication encourage participation.
Embrace Employer-Offered Retirement Services
With so many ways to guide your employees through their retirement planning, you can be the employer that helps build future success for your staff. Supportive retirement guidance shows employees that you value them, which is beneficial for building strong working relationships. Position yourself as a sought-after employer with retirement services that put your employees first.
About The Hilb Group
Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.