Local experts discuss the pros of 401(K) accounts
Planning for retirement can never begin too early, and when people have a healthy retirement account it can lead to peace of mind. Both employers and employees are rewarded when a 401(K) account is part of a company’s benefit package, and in today’s competitive job market they can make a big difference.
As a provider of business administration assistance and benefits packages based in Southern California, we have worked with companies of all sizes and industries to provide the ideal solutions for their specific needs. Our team of experts can meet with you to determine the unique needs of your company and then build the ideal insurance packages, retirement accounts, payroll or human resources plan, and/or take on many other common business tasks.
When it comes to retirement accounts, a 401(K) is one of the most common solutions offered across the country, and they are becoming much more common across every industry. 401(K)s are essential for most companies who are recruiting full time employees, and if your company offers no retirement plan or a very limited one, there is a good chance it will cost you top talent if it hasn’t already.
From an employer’s perspective, offering a 401(K) can help ensure your job postings are in line with your competitors and you aren’t passed over either in collecting applications from talented people or after making a job offer. Job seekers today have options, and if another company has a 401(K) or theirs is stronger than yours, it could be the deciding factor for a prospect.
Employers also benefit from offering 401(K)s because employees have a much greater peace of mind about their futures. With retirement savings on auto-pilot, they are free to focus on other things and offices which offer 401(K)s often have much higher morale and productivity.
From the standpoint of an employee, having a 401(K) retirement account is a great thing. While an employee could open an investment account, an IRA or invest in other methods, a 401(K) is a pre-tax deduction. This means the employee can contribute automatically and not have their investment taxed beforehand. In addition, most 401(K) plans offer a match from the company, allowing the employee’s retirement account to grow twice as fast. 401(K)s allow employees to enjoy the benefits of compounded interest on money which is doubled by their employers. It’s easy to see why offering these retirement accounts can increase morale.
By offering a 401(K), a company shows they are committed not only to recruiting top talent, but they want to take care of their teams and ensure they are set up for a comfortable life after their working years. Employers who offer 401(K)s often have less turnover, higher productivity and a healthier bottom line, even though they bear the cost of matching contributions.
If your company is not offering 401(K)s or you need assistance crafting the ideal benefits package, give us a call today and we will be happy to help!
