Posted in:Total Rewards
Ah, retirement. It’s something many people spend much of their working lives looking forward to – but for employers, it comes with a whole host of considerations. Some employers may choose to avoid going out of their way to support retirement planning, but this can be a mistake. Helping employees plan for and manage this transition benefits both the individual employee and the company as a whole.
Plans for Retirement Savings
In order to stay competitive and to support their employees, many employers offer some form of retirement savings vehicle. While the robust Defined Benefit pension plans of decades past may be waning in popularity, many employers still offer either a Defined Contribution plan, or a group Registered Retirement Savings Plan (RRSP) matching program. Depending on your organization and your employees, participation may be required by all employees or it may be optional. Consider what works best for your unique workforce. And, do yourself a favour and work with experts when you are designing retirement savings programs, especially when it comes to the tax implications to make thoughtful decisions.
If it is right for your business and culture, you may even want to look into pension plans and non-registered savings vehicles. Take the time to learn and figure out what is best for your business, as well take time to provide education to your team so they can receive the full benefit of your efforts.
Providing Education and Support
Employers are well-positioned to help employees become educated on matters pertaining to retirement planning. Consider offering resources such as Lunch & Learn sessions tackling topics such as budgeting the second half of your life, supporting boomerang children, handling debt, building wealth, and securing assets. An organization with many employees nearing retirement will focus on different topics than an organization comprised mainly of Millennials and younger, most of whom will still have 25+ years in the workforce.
In many organizations, those nearing retirement age will be among the most senior members of their teams, often possessing a combination of specialized knowledge and years (if not decades) of experience. It is always prudent from a risk-management perspective to take steps to ensure critical knowledge is not limited to one individual and to ensure other team members have the skills and resources available to step in when a senior team member leaves the company, whether it be temporary or permanent. It is of utmost important to always work on ways to protect your business, including both hard and soft assets. Sharing of tasks, job shadowing, and simply ensuring others are kept in the loop can go a long way toward ensuring a smooth transition. A smooth transition will lead to fewer disruptions and delays when change happens.
Here to Help
Would you like to learn more about how you can tie retirement planning into your business at a strategic level? We can be reached for a free confidential consultation at +1-403-470-5350 or [email protected].
For further details on how Honiva can help you prepare your employees for retirement, please view our service offerings.
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