With employees becoming more confident in their financial security, organizations would be wise to ensure that they have retirement planning available. Using HR software solutions can be a strong launching point for many companies.
According to a report released by Fidelity Investment last week, their average 401(k) balance hit $77,300 at the end of 2012, which was nearly a 12 percent increase from $69,100 in 2011.
“It is very encouraging to see that the retirement balances have completely bounced back from where they were during the height of the downturn and that participants have continued to have faith in the 401(k),” Jeanne Thompson, Fidelity’s vice president for retirement insights, told CNNMoney.
Thompson added that with traditional pensions becoming obsolete – especially in the younger workforce – the importance of 401(k) planning continues to grow.
With the baby boomer generation nearing the once standard “retirement age” and continuing to work past it, it is even more important for businesses to have comprehensive retirement plan services available.
A struggling economy has been a major factor in employees delaying their retirement, but a recent study showed that even though baby boomers are living longer, it does not necessarily mean they are healthier. This is just another factor that companies should keep in mind, as it shows employees will want to retire for numerous reasons. If not age, health reasons could come into play.
A study published in JAMA Internal Medicine showed that men and women born between 1946 and 1964 were more likely to suffer from high blood pressure, high cholesterol and diabetes than the generation before them.
When payroll and HR software are streamlined, it can be much easier for employees to understand their available 401(k) options and work toward a realistic retirement goal.