Renowned American architect, Buckminster Fuller, is quoted as saying: “The best way to predict the future is to design it”. As an employer, it is incumbent on you to help your team members design their futures by not just saving in a retirement plan, but by encouraging them to make monthly additional voluntary contributions to their pension account.
This is particularly beneficial for team members who started saving later in life or who desire early retirement.
Get Team Members Engaged Around Voluntary Contributions
Engaged team members in a high performing retirement plan tend to be more motivated to perform well, less likely to suffer financial stress and more likely to be able to afford to retire at the time that’s right for themselves and their employer.
The aim of encouraging voluntary contributions is to fortify an individual’s financial wellbeing and help them better prepare for life after a steady income from a nine-to-five paycheck. The past year has proven that the future is unpredictable and as such it is extremely important to help your team plan effectively towards ensuring a more secure financial future.
The Power of Voluntary Contributions
Taking the time to communicate to your team the benefits of voluntary contributions can have a long-lasting impact on the well-being of your employees and ultimately, the success of your company.
Voluntary contributions enhance your team’s retirement income as it is used to secure additional pension at retirement.
The voluntary portion of an employee’s contribution is refundable upon termination from the Plan without having to forfeit the Employer’s contributions made on their behalf.
Making voluntary contributions is flexible. The team can start, increase, decrease, or stop making these contribution payments as required, if their personal circumstances change.
Once employees make voluntary contributions, this has the effect of reducing personal income taxes owed, as it is an employee contribution that is deducted before taxes are applied to pensionable salary.
To learn more about pension investments,
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