Every employer likes to feel appreciated. So you’ll be happy to learn that employees appreciate that you offer a 401(k) plan, as reflected in results of repeated surveys conducted by the Investment Company Institute (ICI).A whopping 92% of participants agreed with the following statement, “My employer-sponsored retirement account helps me think about the long term, not just my current needs.” As ICI President John Schott Stevens pointed out, “You don’t see majorities like that for most propositions that are tested in surveys—particularly not for a system that has taken some very hard knocks from the press and some policymakers.” Stevens discussed this statistic in his speech on “Helping Working Americans Achieve A Financially Secure Retirement: How the 401(k) System Is Succeeding.”
In a world where short-term thinking seems common, inspiring your employees to think about the long term is a valuable contribution. That’s even before you consider the value of offering a well-diversified, economically priced range of investments in an account with automated contributions.
Add the incentive of an employer match and you’ve got a winning proposition for your employees, which also fulfills your responsibilities as a 401(k) fiduciary.
Plan design is more important than investment choices. With the right tools your employees and yourself can attain your long term retirement goals.
Please comment or call to discuss.
- Five more trends for 401(k) Plans. (401kplanadvisors.com)
- Four ways starting a 401(k) can help your small business (401kplanadvisors.com)
- Starting A 401(k) Plan: 5 Things You Need To Know (401kplanadvisors.com)