401k – Group Benefit Solutions

Building a Better Workforce: Why Retirement Benefits Matter

poch@yourfunnelsuite.com — Mon, 27 Jan 2025 09:39:00 +0000

As employers, we all want to attract and retain the best talent while fostering a culture of loyalty and engagement. But in today’s competitive job market, offering a paycheck alone isn’t enough. Employees are looking for meaningful benefits that help them achieve long-term stability, including one critical component: retirement savings.

Providing a 401(k) plan isn’t just a perk—it’s an investment in your workforce and your business. Here’s why retirement benefits should be part of your strategy and how small businesses can make it simpler than ever to implement.

Why Retirement Benefits Are a Game-Changer

Attract Top Talent
In a tight labor market, job seekers are increasingly prioritizing financial wellness when evaluating job offers. A competitive retirement plan signals that your business values its employees’ futures.
Boost Retention and Engagement
Employees who feel supported in their financial goals are more likely to remain loyal and engaged. Offering a 401(k) plan shows your commitment to their long-term well-being, fostering trust and satisfaction.
Strengthen Your Business Reputation
Companies that offer robust benefits are seen as more desirable and forward-thinking. A retirement plan not only boosts employee morale but also positions your business as a great place to work.

Common Hurdles for Small Businesses

While the benefits of offering a retirement plan are clear, small and medium-sized businesses often face barriers like:

Cost Concerns: Traditional 401(k) providers can be expensive, with hidden fees that make them inaccessible for smaller organizations.
Administrative Burden: Setting up and managing a 401(k) can feel overwhelming without the right resources.
Lack of Time: Business owners and HR professionals juggle countless responsibilities, leaving little time to navigate the complexities of retirement benefits.

The Solution: Simplified, Affordable Retirement Plans

Modern solutions like Human Interest are designed to overcome these challenges, making it easier than ever for small businesses to provide 401(k) plans. Here’s how:

Affordable Pricing: Human Interest offers transparent, fair pricing with no hidden fees, making retirement savings accessible for businesses of all sizes.
Automation: With over 500 payroll integrations, automated contributions, and streamlined administration, Human Interest saves time and reduces complexity.
Customizable Plans: Choose from pre-built or fully customizable options that align with your business needs and goals.

Real-World Impact

Imagine empowering your employees to take charge of their financial futures while streamlining operations on your end. With Human Interest, even the smallest businesses can provide retirement benefits without the headaches of traditional plans.

I’ve seen firsthand how offering a modern 401(k) can transform a workplace, fostering a sense of security and trust. Whether you’re trying to attract top talent or simply provide more value to your current team, a solution like Human Interest is worth exploring.

Take the Next Step

Retirement benefits are no longer just a nice-to-have; they’re a necessity in building a competitive, thriving business. If you’ve been hesitant to offer a 401(k) plan due to cost or complexity, I encourage you to consider Human Interest.

By investing in your team’s future, you’re also investing in your business’s success.

Besides Health Insurance and 401(k)s, These Are the Benefits Employees Value Most

Chris Wolpert — Tue, 10 Jan 2023 22:49:22 +0000

Besides health insurance and a 401(k) plan, other benefits that employees value highly are generous paid time off and flexible or remote work, according to a new survey.

But for the first time, the annual study by employee benefits provider Unum found that the younger generations are not on the same page with their older peers when it comes to what they value most in their benefits package.

“A multi-generational workforce is a huge benefit for companies,” said Liz Ahmed, executive vice president of People and Communications at Unum. “With the diversity of background, experiences, and thought employees bring, employers need to make sure there’s something in their benefits package for everyone’s different stage of life.”

Although the generations differ in their top three priorities, when opened to the top five, there is one common denominator: emergency savings.

Emergency savings

Sixty-four percent of employees surveyed said they do not have access to an emergency savings option through their employer. This benefit ranks third for boomers (25%), third for Gen X (32%) and second for Gen Z (37%).

Emergency savings plans can help prepare your employees for unexpected expenses — without dipping into retirement funds or using credit cards.

Employer-sponsored emergency savings accounts help workers save for financial emergencies by automatically deducting an amount from each paycheck and depositing it into a separate account. If they need to cover a bill or cash gets tight, they can draw from this fund to bridge a financial gap.

Also, with mental health support and resources high on the list for younger workers, employers may consider tapping an employee assistance program. EAPs are voluntary, work-based programs that offer free and confidential assessments, short-term counseling, referrals and follow-up services to employees who have personal and/or work-related problems.

You can use the following list as a general guidepost if you are considering adding voluntary benefits to your employee offerings.

These are the top 15 non-insurance benefits for U.S. workers:

Generous paid time off program
Flexible/remote work options
Paid family leave (for childcare or caring for an adult family member)
Mental health resources/support
Emergency savings
Professional development
Financial planning resources
Fitness or healthy-lifestyle incentives
ID theft prevention
Gym membership or onsite fitness center
Student loan repayment benefits
Pet-friendly offices
Personalized health coaching
Sabbatical leave
Dedicated volunteer hours.

A final thought

There are so many voluntary benefits to choose from that it’s important that you opt for ones that your employees actually want. A good way to gauge their interest is to conduct your own survey by asking them which benefits they would like to see and offering them a list to choose from.

Put Money into an HSA instead of a 401(k) After Employer Matching: Report

Chris Wolpert — Tue, 27 Apr 2021 19:18:50 +0000

One of the main recommendations for employees with 401(k) plans is that they should contribute at least enough to their plan every paycheck to ensure they receive the maximum they can in their employer’s matching contributions. But a new study by Willis Towers Watson recommends that younger, healthier workers should divert savings to their health savings account from their 401(k) after capping out employer matching instead of continuing to put money into their retirement plan. The report reasons that if they do this, they can get more bang for their buck when they use their HSAs to pay for future medical expenses. That’s because HSAs can be kept for life and the money they’ve accumulated in them can be used to pay for medical expenses whenever they need them, including in retirement. And the moneys used in HSAs to pay for those expenses are not taxed when they are withdrawn, unlike 401(k)s, the funds of which are subject to federal income tax when withdrawn

The benefits of HSAs

With HSAs:

Pretax contributions, gains from investment, and withdrawals used for qualified medical expenses are exempt from federal and most state taxes.
Any unused balance is carried over to the next year.
Funds never expire.
Unused funds can be passed on to a beneficiary after death.
After turning 65, account holders can withdraw money for any purpose. However, if those funds are not use for a bona fide medical expense, they are taxed as income.

No other retirement savings vehicle has the same tax advantages as an HSA, so a dollar saved in an HSA can be worth significantly more than an unmatched dollar saved in a 401(k), according to Willis Towers Watson. Some employers will match a portion of workers’ HSA contributions or seed their accounts with money to encourage participation. That said, HSAs won’t outperform funds that are matched partly or fully by an employer, according to the report. Willis Towers Watson said that those tax-free dollars and withdrawals can help pay for health care when we are likely to use it most: in retirement. Men who retire at 65 with an average life expectancy of 85 would spend about $140,000 out of pocket for medical costs, and woman who retires at the same age and lives to 87 would spend an average of $159,000, according to the research.

The HSA pitch

HSAs can only be used in conjunction with a high-deductible health plan. When HSAs were first introduced, they did not have investment options for the money in the accounts, but as they have grown in popularity over the years, many HSAs now have evolved to essentially have the same investment choices as a 401(k). HSAs have rules about how much of the balance can be invested. They will typically require that the first $1,000 in the account to be held in cash, and anything above that can be invested to help the funds grow over time. In 2021, workers can contribute a maximum of $3,600 to their individual HSA account and $7,200 to a family coverage account. If you are offering your workers high-deductible health plans with matching HSAs, and if you also provide a 401(k) and match part of the contributions, you may want to consider sharing this information with them to help them make informed choices on where to park their money for future use.