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Why Your Company Needs a Properly Designed Retirement Plan

Retirement Trends

  • In 2010, 16 percent of American workers stated that they were very confident they would have enough money for a comfortable retirement, according to the Employee Benefit Research Institute 2010 Retirement Confidence Survey Report. This is up from 13 percent in 2009, which was a 20-year low in retirement confidence. Data from the report show that about 60 percent of workers actively save for retirement. The dollar amount of American retirement accounts as of 2010 is split as follows: 27 percent of Americans have less than $1,000 in their retirement account; 16 percent have $1,000 to $9,999; 23 percent have $10,000 to $49,999; 22 percent have $50,000 to $249,999; and 11 percent have $250,000 or more.

Read more: The Average American Retirement Account

 

Retirement Planning is critical for employees. We offer the top programs at no cost to the employer. The challenges are huge. Less than 42% of all employees participate in a 401k Retirement plan.

Worst, here are some of the facts:

Over half of all workers have lost faith in the Social Security System.

• 61 percent of Americans in 2009 were living paycheck to paycheck. That was 43% in 2007.

• 46 percent of American workers have saved less than $10,000 for retirement. (29% less than $1,000)

• 36 percent of workers don't contribute anything toward retirement savings.

                The average percent of salary contributed to a 401(k) 6.8%

               Percent of employees who contribute when an employer also contributes 10%

  Percent of employees who contribute when an employer does not contribute 7.4%

These are lousy results which only means the 401k administrators and consultants are not doing their jobs. Our participation percentages are substantially better than the National Averages.

 • 43 percent "can't wait to be retired".

 • 41 percent prefer not to retire.

 • 74 percent of workers expect to work after retirement.

• According to AARP, 40 percent of baby boomers plan to "work until they drop".

 • 24 percent of workers in the United States have postponed their retirement at least once in the past year.

 • The highly educated of retirement age tend to work longer.

 • 52 percent of potential retirees plan to work part-time. Nine percent plan to work full-time.

• In 2008 those working at age 65 - 69 (35%), age 70 - 74 (21%), age 75 - 79 (13%).

Your employees deserve the best opportunity to have a retirement program which will help them meet their goals. It will help your company also meet its goals.