Most people realize that, in the 21st century, they must take more responsibility in saving for their own retirement. According to a Business Index survey, nearly 50 percent of business owners are worried that they won’t have enough money when they retire. But what about their employees? They will also need nest eggs, too. Offering to create a retirement plan for them can benefit your business in more ways than you have ever thought.
Here are six practical reasons your businesses should consider a retirement plan.
Retirement plans help reduce employee turnover
About 40% of business employees say they would leave their current job for one that provides a retirement plan. And retirement plans are among one of the top 10 reasons why employees choose an employer, according to a recent survey. Offering a retirement plan not only shows how much you care about your employees but also places you in a better competitive position. Retaining employees means that you will spend less or no money on training and recruiting new ones.
Retirement plans help save on small-business taxes
Your business may receive a $500 tax credit for the first three years you offer a retirement plan. If the $500 tax credit for starting up a retirement plan isn’t convincing enough, then the tax deductions for employer contributions should be. As a bonus, you, by investing in your plan, can save on your personal taxes, too.
Retirement plans contribute to the economy
When business owners equip their-self and employees with the tools necessary to comfortably retire, they contribute to building a healthy economy — and a community of people with a better disposable income.
Retirement plans help business owners support their personal retirement
Too many business owners focus entirely on their business success while shortchanging their personal retirement security. Using a retirement plan makes sense regardless of how long you’ve been doing business. Even if you decide to start up another company. You can simply roll your plan balance over to a new account.
Retirement plans are a recruiting magnet
In the past, employees were guaranteed a certain amount of income through pension plans offered by employers. Today, pension plans are becoming scarce, and potential employees now realize the benefits of joining a company that offers a retirement plan. If an employee has to decide on picking between two job offers and one company offers a retirement plan, it’s likely to sway their decision. In other words, retirement plans are a must-have benefit that will help attract top talented employees to your business.
Retirement plans are simple to maintain and set up
Today’s web-based business retirement plans are fairly easy for a business owner to set up, maintain and administer. With online setup and management, plan administration requires a little time commitment — and little or probably no paperwork. Businesses have 24/7 access to their online accounts, and a retirement specialist just at a phone call away.
A company retirement plan is a great idea for almost any stage your business is in.
Until next time,
To Your Growth & Profits
William De Temple, CEO Antirion LLC
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