With more baby boomers having trouble saving for retirement, businesses would be well-advised to invest in HRIS software to assist in the planning.
Without comprehensive retirement options available to them, it will be increasingly difficult for the American workforce to properly plan for the time they can finally stop being part of the 9-to-5 culture. Retirement planning is essential for individuals' futures, and businesses need to take whatever steps possible to ease the burden of financial planning.
Investing in HRIS software can not only streamline the payroll process as a whole, but it can ensure that 401(k) retirement options are easy for employees to understand. With a recent study showing that baby boomers will only have enough money to cover two-thirds of their retirement years, having an HR software solution can keep workers happy.
According to the report conducted by HSBC, the average person in the United States will spend 21 years in retirement, but will deplete their savings after just 14 years. Additionally, 19 percent of the world's working population is not saving anything at all towards their retirement.
Andrew Ireland, HSBC executive vice president of retail banking and wealth management, explained to the news source that the study further underlined the importance of proper financial planning. For example, 43 percent of pre-retirees said they were willing to prioritize saving for vacation rather than retirement.
"People are living longer, through tougher economic times, but expectations about their standard of living in retirement remain unchanged," he said. "As a result, millions of people around the world are facing years of hardship after their savings run out."
Respondents also showed how vulnerable retirement savings can be when it comes to covering short-term needs. Almost one-third said that they would dip into their retirement money to deal with life events such as buying a home or paying for their children's education.
HR consulting companies can help businesses find the right solutions for the organization and its workers. That way, financial planning can be simplified for both parties.