We realize that half of the school calendar year is almost over. Budgets, financial goals and personal accomplishments will be popular topics now. So are your employees financially independent for tomorrow (FIT)?
While offering several retirement plan options that offer tax advantages for your employees is a benefit to your employees, lack of program awareness can result in low participation rates and insufficient retirement planning by employees. Allowing multiple vendors, along with their financial professionals, to educate employees on the importance of saving for retirement benefits everyone. However, some major obstacles get in the way.
For the nation’s Baby Boomers, one in four have less than $5,000 saved for retirement.1 As for our GenXers, they spend the most money out of our three generations. They spend about $66,981 PER YEAR.2 And…48% of them are focused on paying off their debt with their retirement savings.3 50% of them retired before they even planned on it and 66% of them are not that educated on retirement.4 54% of our nation’s Millennials are focused on paying off their debt with their retirement savings and 39% of them think that their greatest concern is not having enough money saved to retire when they want.5
If we were able to have our financial professionals come and educate employees on the retirement gap between their State Pension Plans and what they will actually get in retirement, this could help shed some light on their concerns and help them plan for a better retirement.
Contact your financial professionals today to come and help educate your employees about their retirement plan.
1 America’s Top Three Retirement Fears, Indexed Annuity Leadership Council, 2016.
2 U.S. Department of Labor, Spending Habits by Generation, 2016.
3Transamerica Center for Retirement Studies (TCRS) Perspective on Retirement Study, August 2016
4 “Gen X is sleeping through its retirement wake-up call,” Market Watch, published 9/18/2015.
5Market Probe & Wells Fargo Survey, 2014.
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