On the surface, saving money isn’t hard. Common sense says don’t spend more than you make. If you want to save, spend less than you make. Make sure you have money for a rainy day. If you ever want to retire from working you need to save money. We can all agree on these basic truths. But what if we take it a step further?
A 2018 Gallup Survey found 58% of American are very/moderately worried about their retirement security. This ties with medical costs as the top financial concern Americans face. Another survey on retirement confidence from 2018 found 37% of American have less than $10,000 saved and 80% don’t have a retirement plan. Schwab Retirement Plan Services recently released their findings from a new 2019 study. Among other things, the study found:
- 65% say participating in a 401(k) plan was their first experience with investing
- 95% acknowledge they would feel confident in making the right financial decisions with professional help
- 87% of participants consider a 401(k) a must-have benefit. Only health insurance ranked higher with 89%
- Catherine Golladay, COO at Schwab Retirement Plan Services stated, “We believe everyone can benefit from professional financial advice…”
Overwhelmingly, employees are searching for professional guidance along their financial journey. Who will they turn to? Illinois Secure Choice says call our call center, but they won’t give financial counseling. As an employer, you certainly don’t want to be giving out financial advice either. It might be time for a financial professionals to get involved.
If you have any questions, need additional information, or would like to talk about other retirement plan options, please do not hesitate to contact Associated Pension Services, Inc. We have been involved in the retirement plan administration business for over 30 years, helping small business owners and HR managers like yourself navigate, establish, and implement retirement solutions. You don't need to go at this alone.
Frederic (Eric) Hoffman, IV, AIF®, CPFA, APR, RICP®