As HR trends and best practices continually change, businesses must adapt to attract talent, improve productivity, and enhance company culture. One buzzword that has recently gained traction is “retirement readiness.” In response, many companies are evaluating their existing retirement benefits offering to determine if it still fits the needs and goals of their valued employees.
What is retirement readiness?
Most employees understand the importance of saving for retirement, regardless of where they are in their respective careers. But just because they contribute to a company-sponsored retirement plan doesn’t necessarily mean they’re on track for their desired retirement age or lifestyle. Retirement readiness refers to an employee having a clear understanding of their progress and a feeling of confidence that they will be financially prepared to enter post-career life.
With the stress of personal finances impacting both employees and employers, companies are beginning to realize the benefits of offering a more progressive retirement readiness program as part of their benefits program.
Assessing the financial readiness of your workforce.
When determining whether your current defined contribution retirement plan is adequate for today’s financial challenges, it’s wise to start by assessing the mindset and perspectives of your current employees.
We encourage you to reflect on the following questions:
1. How important is the company’s retirement plan to your employees? Is it an influential factor in beginning and/or continuing their career with your company?
2. Have you noticed that personal finances are a major source of stress for your employees?
3. Do your employees have confidence in their abilities to manage personal savings and investments based on the tools currently available to them?
4. Do your employee, in general, believe they will be financially ready to retire at their goal date?
5. Do employees perceive that that company cares about their financial security and wellness?
6. Do employees believe that the company has provided tools to maximize their potential for retirement readiness?
7. When it comes to financial employee benefits, are all employees treated equally and appropriately?
8. How could employees from different age groups or socioeconomic levels be treated more fairly?
9. Could most employees name the company that manages the retirement benefits program, or know who to contact with questions or concerns about their account?
10. How satisfied are your employees with the retirement plan currently offered by your company?
Taking the next step.
If this short assessment reveals shortcomings in your current retirement plan, Sanderson Wealth Management can assist you in surveying your workforce to more precisely gauge their retirement readiness and ways to enhance your plan offering.
You can also learn how Prosper Financial Wellness helps employees build confidence in their financial journey through sophisticated investment strategies, personalized support, and education at all career stages.
