You know that it’s essential to invest in your employees. After all, they are the ones who help make your business successful. But did you know that one of the best things you can do for your employees is to help them retire?
Many of the Baby Boomer generations are now retiring. It’s estimated that about 28 million Boomers have retired since the start of the pandemic, and that number continues to grow today.
Additionally, the current and future generations have plans to retire early. It’s estimated that more than half of millennials in the workforce want to retire before age 65.
Helping your employees retire should be a goal in your company. Here are a few reasons you should consider offering retirement assistance to your employees.
Recruitment and Retention
One of the most challenging things about running a business is finding and keeping good employees. If you offer retirement benefits, you can attract and retain talented employees. A recent study found that nearly 60% of workers would choose a job with better retirement benefits over a job with a higher salary.
It’s Good for Business
Offering retirement benefits is not only suitable for your employees, but it’s also good for business. When your employees can retire, they will have more time to spend with their families and pursue other interests. This can motivate them and increase productivity and creativity at work. Additionally, research has shown that businesses that offer retirement benefits have lower turnover rates. Here are other reasons why it’s good for business:
Tax-Deductible
Another great reason to offer retirement benefits is that it’s tax-deductible. You can deduct up to $5,000 per employee from your taxes every year. This deduction can save you thousands of dollars every year on your taxes.
Cost-Effective
Many people think offering retirement benefits is expensive, but this isn’t true. There are many cost-effective ways to provide retirement benefits, such as affordable 401(k) plans. These plans are also easy to get for your company and even easier to maintain. So consider getting a cost-effective 401(k) plan for your company.
It Shows That You Care
When you offer retirement assistance to your employees, it shows that you care about their future. This can lead to increased loyalty and morale in the workplace. In addition, your employees will feel like they are part of a team and that you are invested in their success.
Good for the Economy
Offering retirement benefits is not only suitable for businesses and employees, but it’s also good for the economy as a whole. When people can retire, they have more money to spend on goods and services. This stimulates the economy and helps create jobs. Here are other reasons why it’s good for the economy.
Reduces Dependence on Social Security
One of the biggest concerns people have about retiring is whether or not they will have enough money to live on. If more people can retire with employer-sponsored retirement plans, there will be less need for social security benefits. This will reduce the burden on the social security system and help ensure its solvency for future generations.
More People Entering the Workforce
As other employees retire, it’s essential to have a steady stream of new people entering the workforce. When more people are working, the economy grows, and innovation flourishes. Offering retirement benefits can help facilitate this process.
Bring in New Talent
When experienced employees retire, it opens up opportunities for new and upcoming workers to take on more responsibility and advance within the company. This can bring new life into a business and create a more motivated workforce.
Once you have new talent in your company, you can help them grow and succeed. With the right retirement benefits, you can create a happier and more successful workforce passionate about your business. They can also replace leaders. New leaders can have a fresh perspective on your business and help you stay competitive.
Diversity
Lastly, by helping some of your employees retire, you can bring in new and more diverse employees. Diversity is known to bring three good things to a company. First, it increases creativity. It also increases problem-solving among teams, and finally, it improves the bottom line.
Additionally, diversity can improve retention rates, which can help keep talented employees working for your company. It can even enhance company culture, which is crucial for business success.
Retirement might seem a long way off for most employees, but it will be here before you know it! By offering retirement benefits to your employees, you can improve the current state of your company! What’s not to love? Investing in your employee‘s retirement today will pay off for both them –and–you down the road!
