Partner Corner: Help Your Employees Plan Their Retirement

By: Kim McVicker

Tips to assist your employees with smart financial planning.

Challenge: Our association had to reduce employee benefits for economic reasons. As we look to reinstate these benefits, how can we assess whether we're competitive in the marketplace?

Solution: Many associations and nonprofits are closely reviewing their employee-benefit packages to ensure that their benefits are valued by staff and are effective in helping employees achieve their financial goals.

Determine how competitive your benefits are by benchmarking your retirement-plan features and compare them to other plans. To review relevant benchmarking information, such as how automated solutions affect participant behavior, why more organizations are considering bundling services, and how regulatory changes could affect you, download the Total View report created by Principal Financial Group at

Here are some statistics regarding retirement-saving behavior found in the report:

  • A 100-percent employer match resulted in higher participation levels.
  • Participation increased until age 65. Many employees under 35 were likely paying off college debts and credit card balances, rather than signing up for their employer's 401(k) plan.
  • Employees with an annual compensation of $50,000 to $75,000 participated at nearly double the rate of those with an annual compensation of $30,000 to $50,000.
  • Men on average defer at a greater rate than women.

Help your employees stay on track by offering resources that can help your employees make informed financial decisions, such as money-management and life-event tools and training. By offering educational programs and a competitive retirement-savings plan, you can attract, keep, and motivate great employees; boost retirement savings; and protect your business.

Kim McVicker is senior relationship manager at the Principal Financial Group. The Principal provides the ASAE-Endorsed retirement solution for associations and nonprofits. Phone: 515-362-0342; Email: [email protected]