Retirement Readiness: The Key Role Employers Play in Preparing Employees for a Successful Retirement

According to Forbes, “a significant portion of the population will lack the resources to live comfortably after they stop working.” When the age of retirement blossomed, it was with the assumption that individuals would retire around age 65, supported by the minimum provisions of Social Security. The problem is, maintaining any type of comparable lifestyle in retirement, is now rarely supported by Social Security alone (1). In 2022, the Census Bureau forecasted that by 2030, there could be more than 73 million people aged 65 and over, comprising about 21% of the country’s total population. That is up from 49 million in 2016 (1). Our country is facing a retirement crisis as access to pension plans decreases, inflation rises, and individuals prioritize current-day lifestyle over future security.

In order to support a comfortable retirement, both employees and employers need to plan ahead. What the average person needs financially to retire depends largely on what they earn while working. On average, people require about 75% of their pre-retirement income to ensure a comfortable old age (1). Employers hold an increasingly crucial role to help their employees plan for the day they stop working, out of necessity or by choice. Retirement products need to be offered and promoted by employers to urge employees to properly prepare for life after full-time work. Choosing to save for the future is not a one-time election when an employee is hired. Employee needs, priorities, and the means to save change over time. Employers who educate on benefits year-round help their employees remain mindful of their long-term goals. Lack of information, knowledge, and motivation are often at the heart of why people neglect to save (2).

Employers can provide access to retirement savings options through payroll, simplifying the process for the employee, and committing them to ongoing contributions. Employers can also offer peace of mind and financial security through Pension Fund retirement products that protect employees from the downsides of market risk. Secure pension credit accumulation and base interest on the Tax-Deferred Retirement Account 403(b)/Roth 403(b) (TDRA 403(b)/Roth 403(b)) bolsters employee confidence that their funds saved toward retirement will be there when they need them.

Traditional retirement products require that employees choose their own allocations, discouraging those who lack the knowledge to make such elections from even participating. By removing this barrier to entry using our secure Pension Plan and TDRA 403(b)/Roth403(b), which require no asset allocation management by members, employers can increase participation and encourage individuals to engage in the process of retirement savings. Nurturing an employee’s investment in their financial future can even assist with retention by encouraging longer tenure based on maintaining access to their trusted employer-sponsored retirement plans.

Another service that can help make retirement a reality, and is often overlooked by our members, is free access to Your Money Line. While Pension Fund is not allowed to give financial advice, we understand that at times our members need guidance to help them navigate difficult financial questions. This complimentary financial wellness program assists members with these questions and helps them focus on financial stability. Your Money Line’s financial guides help provide solutions and a plan of action for members who feel they are struggling to tackle personal debt, prioritize savings, or make the best choices possible with their current income.

With employer support, secure product options, and access to free financial guides, Pension Fund can help make retirement possible.

Are you ready to take the next step in supporting a secure future for your employees? Visit our Get Started page today and connect with your Client Relations team member. Together, we will tailor an employee benefits solution that aligns with the unique needs of your organization. Don't wait—empower your workforce with the financial security they deserve and ensure a brighter tomorrow.