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Published on Dec 10
The transition to retirement can be extremely overwhelming. Moving from full-time income, to living off Social Security benefits and retirement savings can cause uncertainty for anyone. For employers, losing an experienced employee can create a burden for your business and remaining employees.
Offer a Robust Retirement Plan
The best way to help your employees prepare for transition to retirement, is to make sure that they are financially prepared to fund their post-work life. A robust employer-sponsored retirement plan, like a 401(k), allows your employees to save for retirement throughout their working career.
Not only is a 401(k) a powerful tax-deductible incentive for employees to begin saving, but they also allow you to demonstrate your commitment to the long-term success of your employees, by offering an employer match up to a predetermined percentage. Encourage employees to max out their contribution to make the most of their potential tax savings. Check out ABCs of Retirement to learn more about the role that 401(k) plans can play in your employees’ future planning.
Working with a specialist can give you access to financial wellness programs and retirement planning opportunities to help your employees plan for their long-term success. Working with a financial planner gives your employees the opportunity to figure out what age they might retire, how much money they’ll need to save to fund a comfortable post work life, and allow them to develop a plan to fund medical needs as they age.
Offer Phased Retirement Options
For many employers who are starting to think about retirement, making the leap from full-time employment to a life after work can be overwhelming. Offering phased retirement options to your older workers can help your company avoid many of the pitfalls of losing skilled workers, while also allowing your workers to ease into a post-work life.
Instead of going straight from regular full-time income to drawing only from your savings or Social Security, phased retirement allows your older workers to pass on their skills, knowledge, and talents to younger workers. A few great options are to allow retiring employees to work fewer hours, or a more flexible schedule, or develop a full-blown mentoring program that matches soon-to-retire employees with new employees.
Plan Administration You Can Trust
Sheakley provides individual account support for small to medium-size employers. It starts with a consultative meeting to determine the plan design that best meets the needs of the business and its employees. Then we’ll manage the planning services, ensuring simple, efficient and successful administration of your retirement programs.