Retirement savings is a huge topic in mainstream media, online discussions and even in conversation among friends. And it should be. Studies routinely show that most Americans aren’t saving enough money for a comfortable retirement. A 2019 report from the United States Federal Reserve shows that 42 percent of those aged 18-29 have no retirement savings at all. Worse, 13 percent of non-retired people age 60 and older say they have no retirement savings or pension. The report also shows that only 45 percent of those 60 and older perceive their retirement savings to be on track.
That’s where businesses come in. Helping employees save for retirement by instituting a 401K retirement plan with an employer matching contribution can give employees some level of comfort and peace of mind as they age toward retirement. Here are some of the benefits of offering a retirement plan:
- Business contributions to a plan may be deductible up to certain limits.
- The business may get a business tax credit.
- A retirement plan helps attract and retain quality employees. Job candidates in today’s market consider benefits as well as salary. Bringing in the right people can set up a business for future growth.
- The percentage of a 401K employer match could be tied to performance to incentivize employees.
- Owners and managers can also participate in the 401K, getting the same tax benefit as other employees.
We can help implement and manage your company’s retirement plan. Give us a call today to get started: (904) 596-2847.