401 Plan Should Not Be The Retirement Options

981 WordsDec 6, 20154 Pages
Employer matched 401k plan should not be the only retirement options people have its one of a few. Company pensions are almost a thing of the past many companies are doing away with this benefit due to cost associated with maintaining this plan. Today most people don’t even stay at a job longer than five years, with this type of turnaround it would make it that much more costly to an organization to maintain this benefit. The key to addressing the retirement needs of your employees it to educate them. By providing educational retirement workshops the employee will be better equip in making informed decisions about retirement. We all know it’s never early to plan for retirement the earlier the better. Young people as young as twenty should have a retirement plan already under way, when you are educated and informed you put yourself in a better position in the long run. As the HR professional in charge of informing the employees I would have a meeting broken into groups by departments. At the meeting I will explain our company’s retirement options company wide. Literature should be distributed explaining the plan how it works and what to expect when that time comes. Keeping the lines of communication open with the employees is essential; the employee should understand fully all aspects of the employer sponsored retirement plans. Outsourcing has grown in popularity in recent year’s health care reform along with compliance challenges are the biggest contributing
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