What do I as a sponsor need to consider with regards to retirement readiness?
How can I improve my employee’s readiness and is it important?
How does this help the company?
We believe more employers are viewing “retirement readiness” as a tool for profitability. A good starting point for companies ton consider is having an advisor prepare a retirement readiness score that evaluates an employee’s retirement readiness status. This can done using a variety of tools; Level Four Advisory Services has several exclusive to our firm. This establishes a baseline and overall employee readiness level, so that we can project what employees have saved towards their personal retirement goal and detect any gaps. If the employee hasn’t saved as much as they need to, it can cause the employee to work longer than they had originally intended. This results in higher costs for the business in the form of salary, higher medical expenses, and possibly a workforce that is less engaged and more concerned about their finances than working on the company tasks.
Once an overall score is established for the company’s workforce, we can target specific groups of employees to have the maximum impact. We can focus marketing efforts to get employees engaged and back on track for their savings. We then re-measure retirement readiness scores after a specific period of time and are able to engage with the employees and show the results.
Our goal is to get employees ready to retire by their desired age and believe that it is a direct financial benefit to the company.