As an employer, one of the best benefits you can provide your employees is a retirement plan. Life expectancy has increased, and proper retirement planning has become critical to provide supplemental income during those golden years. However, according to the 2013 Employee Benefit Research Institute Retirement Confidence Survey only 57% of all workers say they are currently saving for retirement. And the large majority of workers who have not saved for retirement have little in other savings.
More effective action by employers can help a great deal in not only getting workers to save, but also encouraging them to save enough. Failure to properly plan for retirement, plus longer life expectancy leading to the challenge of outliving assets, puts a strain on our society. Ultimately, we all bear the cost of those who fail to plan. As an employer, you can help make saving for retirement easy and affordable for your employees by giving them the opportunity to participate in a retirement plan.
Milliman’s recent article provides some great information to promote your retirement plan. Here are five tips that can be highly effective in increasing your employee participation:
1. Show employees how proud you are to offer them a retirement plan.
2. Automatically enroll new employees in the plan.
3. Offer an employer matching contribution.
4. Provide mandatory educational meetings or benefits fairs.
5. Keep it SIMPLE to enroll, to get information, to participate.