Most people think of retirement as a time to relax and enjoy life after years of hard work. However, without proper planning and preparation, retirees can quickly find themselves struggling financially. Fortunately, there are several retirement benefits employers should provide that can help make life easier during this time. When it comes to retirement benefits, employers have a lot of options to choose from. Here, William Schantz of Mid Atlantic Financial, LLC lists some retirement benefits that employers should consider providing to their employees to help them save for retirement and feel secure in their financial future.
List of Retirement Benefits That Employers Should Offer
As an employer, you want to offer the best possible benefits to your employees, says William Schantz. This includes a retirement plan that will help them save for their future. There are a number of different retirement benefits that you should consider offering to your employees.
One of the most important retirement benefits is a 401(k) plan. This type of plan allows employees to save money for retirement on a tax-deferred basis. Employees can contribute a portion of their paycheck to their 401(k) account, and the money will grow tax-free until it is withdrawn at retirement. Employers often match a certain percentage of employee contributions, making 401(k) plans one of the most generous retirement benefits available.
Another popular retirement benefit is a pension plan. Pension plans are sponsored by employers and provide a fixed benefit at retirement. The benefit is based on factors such as years of service and salary history. Pension plans can be either defined benefit or defined contribution plans.
Defined benefit pension plans promise a certain level of benefits at retirement. The benefit is calculated using a formula that takes into account years of service and salary history. Defined contribution pension plans, on the other hand, do not promise a specific benefit at retirement. Instead, employees and employers contribute money to an account during the employee’s working years. The money in the account grows tax-deferred and is used to provide income at retirement.
Another retirement benefit that you should consider offering to your employees, according to William Schantz, is a 403(b) plan. This type of plan is similar to a 401(k) plan, but it is available to employees of certain tax-exempt organizations. Like 401(k) plans, 403(b) plans allow employees to save money for retirement on a tax-deferred basis. Employees can contribute a portion of their paycheck to their 403(b) account, and the money will grow tax-free until it is withdrawn at retirement. Employers often match a certain percentage of employee contributions, making 403(b) plans one of the most generous retirement benefits available.
There are a number of other retirement benefits that you may want to consider offering to your employees. These include annuities, IRAs, and life insurance policies. Each of these benefits has its own unique features and benefits. Be sure to talk to a financial advisor to find out which retirement benefit is right for your employees.
The Concluding Thoughts
Employers should consider all of these retirement benefits that William Schantz mentions above to offer their employees. By providing a diverse set of options, employers can help their employees save for retirement and feel more secure in their financial futures, as well as attract and retain the best talent in your industry.