Recent studies show that 36% of Americans save nothing towards retirement. That’s an alarming percentage when you consider increasing medical costs, shrinking social security and longer life expectancy.
Retirement plans are crucial to insure long term financial security for yourself and your employees but also offer many benefits now. As an employer, having a solid plan set up will make your company more attractive to high-caliber employees and help retain them too. Other advantages are the many tax benefits and deductions of contributions as business expenses.
There are several types of retirement plans and choosing one may seem like a daunting task. By considering a few pertinent questions, the appropriate plan should be easy to determine.
Who will contribute to the savings plan – employer, employee or a combination?
What are the costs and fees associated with startup and maintenance?
How much attention to administrative duties should you anticipate?
What pre-tax contribution is within your business’ budget?
By prioritizing which features are most important for your business, a retirement plan advisor and/or tax professional will steer you in the right direction. In the meantime, Bankrate.com has a list of helpful retirement calculators.
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