Planning for retirement involves many important decisions, as well as uncertainties, for workers in today’s job market. The multitude of choices available for people can be overwhelming, when deciding how to put money away to ensure their future is secure. One option that is vital for most is having a guaranteed income when they are finished with their working years.
According to Dan Kadlec’s article in Time’s personal finance blog, a survey conducted by the Bank of America found that four of every five employees are willing to give up 5 percent of their salary and half of them would give 10 percent, in order to guarantee they will have a monthly income upon retirement.
Also, many workers have limited knowledge about the financial options available to them which is why joining a 401(k) plan seems so daunting. One point that Kadlec made is that people can purchase fixed incomes outside of their plans, but this still may not be enough money to live off of.
Bank of America retirement and benefits service director, Steve Ulian said that “People like the concept of guaranteed income, but they often have difficulty correlating it to a product.”
This goes to show that there is a need for financial education available for employees, either online or in person, so that they can make knowledgeable decisions about their future.
It is important to keep you employees up to date with retirement policies so that they can begin planning for their future. HR software can make your policies easily accessible for everyone who works at your company. Additionally, enrolling your employees into benefits programs can be more organized with HR software solutions.