Thinking of starting a retirement plan for your employees? A key benefit of doing so is that with access to a retirement plan, employees may be more likely stay with your company over the long term.
A 2007 survey done by the American Association of Retired Persons (AARP) found that when given access to a retirement plan, 43 percent of employees are “very likely” to participate.
The AARP survey also found that employees lacking access to a retirement plan through their employer were “less prepared for retirement than working households that participate in a plan”. Employees without access to a plan were less likely to have given their retirement at least some thought versus employees with access to a plan (72 percent vs. 82 percent). Other findings relating to “no plan access” versus “having plan access” included:
• Having saved for retirement (51 percent vs. 86 percent)
• Have tried to calculate the money needed in retirement (38 percent vs. 49 percent)
• Receiving help from a financial advisor to see how much they will need for retirement (13 percent vs. 33 percent)
• Used a worksheet or online tool to see how much they will need for retirement (7 percent vs. 18 percent)
• Making changes in their retirement planning as a result of calculating how much they will need for retirement (32 percent vs. 53 percent)
NADART plans have a number of features that encourage employees to participate (e.g., automatic enrollment) and also allow near-constant access to current information on their retirement account balances and investment returns. In terms of calculating retirement savings and post-retirement expense, participants have access to a number of NADART’s online calculators.
If you are interested in starting a NADART retirement plan, please contact one of our representatives at (800) 462-3278, ext. 7161 or nadart401k@nada.org.