Employees are facing a lot of stress these days, and financial worries are often at the forefront of their minds. The cost of living is growing exponentially, and more and more American workers are struggling to manage their debts and support their families with less money, and more expense. As a result, planning for the future has taken something of a backseat, and saving for retirement couldn’t be further from most employees minds, no matter their age.
With this in mind, there really is no better time than now to promote your organizations’ retirement education program, and give struggling employees who may want to save for later life, but don’t feel they can afford to, a review of their options.
Here are two important benefits you stand to gain if you do:
Increased employee loyalty and productivity
Investing in retirement education for your employees can help significantly reduce their financial anxiety, and make them feel more loyal towards your company. Additionally, employees who have been given the tools and techniques to plan for their retirement sensibly, are often more productive.
But it isn’t just retirement that your employees are worrying about. As well as setting aside funds for daily living expenses and saving for retirement, an arguably more significant financial concern is burdening Americans across the country: healthcare. In fact, healthcare has been identified as the most likely and hefty cost retirees will face, with those who are healthy at much as risk as those who are not, since longevity is the biggest force driving lifetime health care costs. By helping your employees plan for their retirement, you’re also helping them plan for future healthcare costs, and ultimately, helping to relieve the stress and strain of worrying about how they’re going to cover such expenses as they get older and leave their job.
Reduced taxes
When employees fail to contribute to a health savings account, or HSA, and don’t use it as an opportunity to bank additional savings for future medical costs, this means that you, their employer, will pay more in taxes. However, when your employees docommit funds to their HSA, you’ll receive tax-related benefits as a result of not having to pay Social Security and Medicare taxes of 7.65 percent on the amounts employees contribute to their account.
From worrying about how they’ll afford retirement, to concerns over whether they’ll be able to pay for their healthcare as they age, your employees are under a lot of financial strain, whatever their age, but you can help. With sound retirement education, you can help reduce their anxiety and benefit from their increased loyalty and production, at the same time. To find out more about retirement plans and educational retirement programs, consult with a business management services provider before it’s too late.