National Slam the Scam Day
This post may seem a little bit off topic, but bare with me!
March 7, 2024 is National Slam the Scam Day, which is a day dedicated to recognize Social Security-related scams and stop scammers from stealing your money and personal information.
Many employers are looking for ways to continuously engage their employees to strengthen a long term relationship. One key area is retirement savings & planning.
Retirement savings might seem like a distant concern for many younger employees who are focused on immediate financial progress and career advancement. However, the truth is that nurturing a culture of retirement savings can have major implications, which can be done in many ways.
Employer-Sponsored Retirement Plans: Many employers offer retirement savings plans such as 401(k)s. These plans allow employees to contribute a portion of their pre-tax income towards retirement savings. Many employers also offer matching contributions, which incentivize employees to save by matching a percentage of their contributions, up to a certain limit.
Employer Contributions: In addition to matching contributions, employers may also make discretionary contributions to employees' retirement accounts as part of their overall compensation package. These contributions can take the form of profit-sharing contributions or employer contributions based on company performance.
Vesting Schedules: Employers may implement vesting schedules for employer contributions, which determine when employees become entitled to employer-matched or profit-sharing contributions. Vesting schedules can incentivize employee retention by rewarding long-term service with increasing ownership of employer contributions over time.
Government Programs: Social Security is the main government sponsored retirement program, which Is financed through a dedicated payroll tax. Each year, employers pay 6.2% of employee's wages up to the taxable maximum of $168,600 (in 2024).
By offering these various forms of support and encouragement, employers can help employees save for retirement effectively and build a financially secure future.
Saving for the future is one thing, but protecting those dollars is another. Take a few minutes to review the attached document to educate yourself. If applicable, share with your employees and loved ones so they can protect their futures as well!
