3 Tips to Help Employees Prepare for Retirement
Part of creating a loyal and productive workforce stems from helping employees maintain a financially stable life. When your workers are near retirement, it’s best to help them prepare and transition in any way you can. By offering programs and educational materials to help employees retire, you’ll increase retention and company satisfaction. Our tips below will help you transition your employees to a happier retirement.
Consider Auto-Enrollment
Automatic enrollment does exactly as its name implies. It functions to automatically enroll your employees in your company retirement plan. This increases the odds of your employees starting to save for retirement earlier, thereby helping them achieve their financial goals in the long run.
Offer Financial Wellness Programs
Sometimes employees don’t save for retirement because they don’t have a foundation of knowledge about personal finance in general. Educating them on the subject with email newsletters, training videos and other resources will help them understand the importance of saving for the future and reducing debt.
Provide a Company Match
Company match programs are one of the most valuable tools to encourage retirement savings among employees. The way a company match works is that, when your employee contributes to their retirement account, you contribute an identical amount of money. That said, most companies cap their company match around 5% of each employee’s total income. This incentivizes them to save, without resulting in too much financial loss for the company.
Conclusion
It’s important to help your employees save for retirement to improve employee retention, satisfaction and to reward them for their hard work for your company. By educating employees through financial wellness programs, auto-enrolling them in retirement programs and providing a company match, you can help them transition gracefully into their golden years.
For some retirement savings tips you can provide to your employees, check out the infographic below.
Brian Farrell is a coach, helping clients achieve their personal and professional goals. He's also the creator of the "QA2 Method". For more about Brian, visit bfarrell.com
