A recent American Century Investments survey of retirement plan participants showed that 90% of them expressed regret about their retirement savings habits. Most of this regret centered on how they didn’t save in their early years of working. They blamed themselves in large measure but also said that early career advice on retirement savings would have been helpful.
These survey participants also said that their employers had significant influence on whether they did or did not participate. Where employers provided information and encouragement participants tended to feel better about their savings habits. Employer matching also had an important role. They further said they thought automatic enrollment for new (and especially for younger) employees was a good thing and the majority of respondents said they would have taken a higher employer match to their retirement plan over a raise of the same amount.
So what does that mean for us?
For Employers:
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If you don’t have a retirement plan, consider adding one.It’s a benefit valued by employees and depending on the size of your business, it can be affordable and simple to provide.
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If you don’t have an employer match, or not much of one, ask your employees about how they value a match versus a pay raise.
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Consider making participation automatic as part of your hiring practice.
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Encourage your employees to save for retirement.Work with your plan provider to offer education or consider bringing in outside speakers.
For Employees:
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Participate in the plan!Save for retirement even if your employer doesn’t have a match.
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Ask your employer to look into education and information for plan participants.
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Talk to your employer, HR director, etc. to discuss the value of matching retirement plan contributions.
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If your employer does offer a plan, don’t forget to say thanks!It’s a great benefit that can help you achieve a comfortable retirement and it isn’t mandatory that they provide a plan.It does cost them money and time…everyone likes to hear “thanks” once in a while.Even bosses!
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Save!It’s important that you save something, especially when it seems like all you’re doing is paying bills and trying to stay afloat.That will never change without making an effort to save for retirement.
As we head into 2018, feel free to send me suggestions of topics you would like to see covered in this blog. You can email me at [email protected].