Should Your Business Offer a Retirement Benefit Plan? Here’s What to Ask Yourself
Retirement benefits are among the best known and most desirable employee benefits offered. So why don’t more businesses offer them?
Company-sponsored benefit plans can be complex and difficult to navigate without experience. Owners who are leery of getting in over their head or aren’t sure if the effort will be worth it may hesitate to make such a big change. If you like the idea of offering retirement benefits but aren’t sure where to start, ask yourself:
Will it provide a recruiting or retention edge, and what is that worth?
Many businesses struggle to hire and keep good people. A retirement plan can help you stand out from the competition or keep an employee from walking (especially with options that reward longevity).Depending on how hard it is for you to find good people, this could tip the scales.
How will a retirement benefit affect my bottom line?
Nothing in life is free, but some things are a better value. That includes retirement plans. Your business could benefit from tax advantages the government offers to encourage more employers to provide retirement benefits. And business contributions to employee retirement are tax-advantaged, which can help your business come tax time.
What kind of plan makes the most sense for my business?
401(k), SIMPLE IRA, SEP – it’s a regular alphabet soup. But behind all those acronyms and numbers, each option offers unique features, benefits, and more opportunities than can be explained in a few words. Talk to an expert who can help you understand, unravel, and evaluate your extensive options.
What will it take to offer and manage a plan?
You’ve got a lot on your plate, so figure out how a retirement plan fits. Maybe your business has a person who can manage the plan, or maybe they’ll need training. Do you run everything yourself? A benefits partner can handle administration, communications, enrollment, and support for a reasonable cost.
Retirement benefits help your employees prepare a solid future for themselves. But there are many other reasons to consider a retirement benefit plan. With the right guidance, you may find that offering a retirement plan makes more sense than you would expect.