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| Benefits & Requirements |
| Retirement Benefits: Give your employees the wake-up call they need |
“Most of us have always been told that the biggest purchase we’ll ever make in our lifetimes is a house, but that’s just plain not true,” says Dennis Ackley, consultant for Watson Wyatt Worldwide. “The fact is, there aren’t too many of us who live in million-dollar houses, so retirement is going to cost more than anything you’ll ever buy in your life (emphasis added). He estimates that most couples will need a million dollars to retire comfortably. (See sidebar equation).
Ackley contends that too many of us are living in a state of denial about the importance of our retirement investments. We just don’t grasp the concept of the real numbers. He can foresee the day when employees will actually sue employers because the company retirement plan promised security, and doesn’t provide it. The key is for employers to take the responsibility to educate employees about how much they will really need to retire. “Ineffective retirement education will not change how much employees need—only how much they’ll have,” Ackley notes.
The crash course
We offer a superb retirement savings plan. If you and your employees are not already enrolled, contact your service representative today. Encourage participation in the plan by offering a “crash course” to your employees about how much they will actually need to retire, and how much they need to be saving now in order to reach their goals. Worksheets, as well as other helpful enrollment information, are available to your worksite employees upon request.
It’s time to embark on a campaign that will get your workers thinking of their retirement savings as a need, rather than a luxury. Also, too many employees actually compare an investment in the company retirement plan with putting their hard earned $$ away for the newest big screen T.V. Home appliances won’t help your employees sleep any better once they retire.
If you plan to retire at 65 and live until you’re 90, your retirement fund will need to provide 25 years’-worth of income. Estimates are that you’ll need about $40,000 annually to live comfortably.
25 X $40,000 = a million dollars
See: “Most Employees Need A Crash Course in Retirement Planning.” HR Wire.
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