Employee Retirement Readiness | Podcast | Ohio CPA Firm | Rea CPA

episode 48 – the secrets to readying your employees for retirement

Even though 401(k) plans have proven to be advantageous, many Americans still aren’t using this powerful tool to its fullest capacity. This week on unsuitable on Rea Radio, Angie Isakson, a qualified 401(k) administrator and manager on the benefit plan services team at Rea & Associates, joins Mark Van Benschoten to talk about “The Secrets to Readying Your Employees For Retirement.” Listeners will become familiar with the differences between defined contribution plans and defined benefit plan and how employee contributions and actuarial formulas can result in retirement planning success.

So, what does success look like? Reflecting on her years of expertise, Angie defines a successful retirement plan as one in which the majority of participants are on track to retire at the time they had planned. Unfortunately, based on these standards, less than 25 percent of those at retirement age are actually ready to do so.

According to Angie, 401(k) plans were never intended to weigh so heavily as a large contributing percentage of Americans’ retirement incomes. Rather, she argues, defined benefit plans were designed to fill this role. But even today defined contribution plans have fallen behind in readying the American workforce for retirement.

The retirement industry, along with financial and business advisors, have a responsibility to educate plan sponsors and participants on how they can improve participation, perhaps by identifying and using better benchmarks and tracking the number of participants and how much those participants are referring towards their retirement.

Listen to this episode to:

  • Learn Angie’s recommended participation rate, contribution rate and matching employer contribution.
  • Discover some of the key advantages to offering a robust retirement plan, including tax deductions, benefits generated by income deferrals and a top-notch workforce capable of driving improved productivity and ongoing innovation.
  • Find out why continuous education of employees and ongoing assessment of your company’s retirement plan is key to ensuring ongoing plan success.
  • Learn how to demonstrate the impact compounding has on a retirement savings account.

articles & insight

How To Measure The Success Of Your 401(k) Plan – Like most business owners, you’ve probably wondered how you can measure the success of your company’s 401(k) plan. Read on to find an answer by comparing some of your key business measures with traditional 401(k) plan statistics.

Unlock The Savings Potential Of Your Plan’s Participants – Back when pensions were standard, workers could count on receiving payouts based on a formula that took their salary and the number of years they worked into consideration to determine their monthly income in retirement. That’s not how it works today. Keep reading to learn more.

Avoid These Three Common Retirement Plan Mistakes – Even though you work hard to ensure that you are fulfilling your all your responsibilities with regard to your company’s retirement plan, it’s not uncommon for something to fall through the cracks. Avoid making these common mistakes.

Retirement Plan Participants Are Content To Watch Their Savings Simmer – It took a while to get to this point, but after taking time to grow and adapt to the ebbs and flows of the marketplace, the defined contribution retirement plan has finally come into its own. Read on to learn more about the current retirement savings climate.

Forget What You Think You Know: 5 Facts About Health Savings Accounts – Providing your employees with the option of participating in a Health Savings Account (HSA) can be a great way to help them manage their wealth strategies. But they may need to be educated when it comes to realizing the real value of this option. Read on to learn more.

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