At some point, all employees and executives who are part of the labor force will eventually retire. According to research conducted by the SHRM (Society for Human Resource Management), the world’s largest HR membership organization committed to human resource management, one of the financial issues that employees face is saving for their retirement years. One benefit that employees appreciate is companies that encourage their workforce to save up for retirement. There are many options when it comes to retirement plans. One pension plan, in particular, has been getting a lot of attention though in recent years: the Employee Savings Program.
An employee savings plan is a type of investment and retirement plan for employees who want to set aside a portion of their monthly pay for retirement. Each month, employees get to decide how much they want to contribute to the plan. The sum is then collected from the employee’s pay in which the contribution will be split into two should the paychecks be received biweekly. Employees generally have the option to change their contribution amount based on their needs and goals, and the automated process can make it easier to save.
One key feature in the said plan is the employer matching wherein the employer will match the contributions in the employees’ retirement savings. It is a smart approach to encourage employees to save more money since their savings would practically be doubled. Moreover, having a vesting plan in retirement plans fosters employee retention. Another advantage for the employer is the ability to attract top talent, as more and more applicants are looking for group benefits.
In the end, there is no “one-size-fits-all” retirement plan among different industries. Different sectors need different types of retirement plans. We at Zalamea are able to provide you with the ideal retirement plan for your industry. With more than 50 yrs of expertise in retirement plan design and setup, we are committed to giving you the best retirement plan for your employees. Get in touch with us at info@zalamea.ph if you have any concerns with your current retirement plan.