It is a fact that retirement planning is one of the top concerns for employees. Therefore, it is imperative that employers provide options for employees to address retirement planning. We at HR Solutions & Brokerage can help with the options, the details and the management.
Most employees have not saved sufficient funds in their 401(k) plans to afford retirement. In fact, the average 401(k) account balance in the United States is just under $67,000 according to Fidelity Investments. If employers are to meet their objectives of recruiting, motivating, and retaining talent, then they need to create both employer sponsored and voluntary savings programs that will assist employees in retirement planning while protecting against the unexpected.
Here are several ways we assist our clients in retirement planning:
Review of Current 401(k) Plan Design
We provide our clients with a comprehensive review of their current plan to ensure that it meets the “best in class” standards of 5 criteria: (1) Plan design, (2) Retirement readiness, (3) Investment selection and monitoring, (4) Managing plan administration and service and Erisa along with (5) Fiduciary responsibility.
Supplemental Retirement Planning Options
We assist in designing and implementing additional funding options that employees can contribute to on an after-tax basis in order to save additional funds for retirement.
Guaranteed Income Retirement Options
As employees near retirement, they have become increasingly sensitive to market fluctuations due to its volatility over the past 10 years. Many employees are looking to their employers to offer them choices that allow them to create a guaranteed income stream in retirement. These choices can range from institutional immediate annuities (which guarantee an income stream for life) to hybrid annuity products (which guarantee a minimum threshold of income while preserving principal).
Retirement Health Care Funding
The skyrocketing cost of health care has created significant concern among those employees nearing retirement. In fact, the inability to afford health care is the #1 reason cited by employees for not retiring and continuing to work. We have developed funding vehicles that allow employees to set aside money to pay for health care costs in retirement. In addition, these programs can help protect employees against the catastrophic cost of a serious illness or long-term care event.
HRSB has partnered with HealthView Services to offer a new health care costs assesment tool. In the past, it has been difficult to calculate these figures but this new web-based software utilizes actuarial data to integrate projected health care costs into the retirement planning process. Take a look at a sample report:
Protection From An Unforeseen Event
The greatest threat to most employees’ retirement plans is the death or disability of the employee or his/her spouse. We have created programs that can be offered on an employer paid or employee paid basis that can help protect against these events.
Menu of Retirement Planning Options
Our menu of retirement planning options include, but are not limited to the following:
- 401(k) Profit Sharing Plans
- 403(b) Plans
- Defined Benefit Plans
- Defined Contribution Plans
- Plan Installation
- Employee Education
- Plan Review and Benchmarking
- Supplemental Retirement Plans
- Retiree Medical Planning
Life Insurance
There are definite challenges to funding defined benefit and/or OPEB plans including the increase in longevity and increases in benefits paid. HR Solutions & Brokerage offers OPTIS (OPEB Pension Trust Insurance Solution) which uses a proven methodology for helping to address those challenges. It helps companies fund their pension and OPEB plans at the lowest cost and risk to all interested parties... the government, employees and taxpayers. Contact us for more information on OPTIS.
Since retirement planning is one of the top concerns of employees, companies that want to attract valuable employees and keep them must provide options for employees to address retirement planning. Let us, at HRSB, show you how we can assist!
