Mitigate the Adverse Effects of Workforce Aging
CFOs Who Partner with an Outstanding Retirement Plan Advisor Achieve Financial Benefits for the Business
An aging workforce given adequate health and welfare benefits but inadequate retirement benefits spells trouble for an organization’s financials, something every CFO needs to know. There are financial benefits to be gained by CFOs who join the plan committee and leverage the retirement plan to put employees on a path to retirement success.
The report on a survey of 401 plan sponsors demonstrates that changing the allocation of the benefits budget from healthcare to retirement counteracts adverse self-selection in recruiting and employee retention. Partnering with an outstanding retirement plan advisor to create a well-designed retirement benefits program obviates the need for onerous and ineffective early retirement programs. Smart plan design improvements such as implementing automatic enrollment at a high default contribution level and instituting annual automatic deferral increases of at least 1% soon boost employees to the desired minimum of 10% of salary going into the plan each year. CFO participation on the retirement plan committee assures that these measures are carried through.
CFOs who continue to monitor the retirement readiness of both their plan and their employee population serve business and employee interests equally well, creating a win-win for their organization.