It’s not enough to save up your pennies and hope to have enough to squeak by in your later years. With inflation and the cost of living rising, it’s crucial now more than ever to leverage your savings by investing them somewhere where they will yield interest, dividends, or otherwise grow.
The most popular way to do this is the 401(k) plan, offered by many employers in the United States. Many companies will even match a percentage of an employee’s 401(k) contributions. For the employee, that both grow your money for the long term and rewards your investment with free money upfront! Win-win!
The 401(k) – Great for the Employee
Unless you want to work for the rest of your life, every employee should save for retirement as early as possible to benefit the most. 401(k) plans are one of the most popular ways to do that in America.
401(k) plans have a higher limit for contributions, allowing an employee to deposit more each year versus the comparable IRA. Like IRAs, 401(k) plans are pre-tax, so the money is not subject to taxes until it is eventually withdrawn later in life. Also, like IRAs, however, Roth 401(k) plans exist and tax the contribution upfront so that employees will enjoy tax-free income during retirement.
401(k) plans are one of the best ways for an employee to watch their wealth grow while working. ERB provides a variety of plans to help your employees start saving for retirement today.
The 401(k) – Great for the Employer
Your employees aren’t the only ones who benefit from offering a 401(k) plan at your organization. Employers benefit as well.
The marketplace is competitive and highly skilled workers are a commodity. Experienced employees who received ample training, certifications, and other accolades are leaving their workplaces for better offers more often than in previous years. It’s important for employers to recognize this trend and take measures to counteract it.
A competitive benefits program will do just that, especially if the salary is commensurate or slightly better at another company. Employees with history will elect to stay if they have a great benefits program in place along with employer contributions to match.
This promotes goodwill between the company and the employee, keeps morale high, keeps the business competitive in the marketplace, and helps provide a long-term plan for everyone to benefit mutually.
And with ERB on your team, you won’t even have to do the necessary paperwork or processing to put it in place. They take care of all the logistics, so you and your team will start saving today.
ERB Benefits Everyone!
If you’re ready to offer your employees one of the best and most popular vessels for accumulating wealth but you haven’t had the time to get it done personally, don’t waste another day.
Call ERB today and get the ball rolling, and your employee’s wealth building, today!