How high are your retirement plan fees? Do you have a strategy to manage the costs?
It’s common for employers to focus on reducing costs and increasing revenues. This is logical. It’s what being in business is all about.
But sometimes they can be so insistent about cutting costs that they ignore or aren’t provided with information that can both save them money and make the plan more attractive to their team and recruits.
Instead of seeking out alternative plans that could benefit their employees and their business, they pass on all the costs of the plan to the participants, dramatically reducing the results they can expect and deflating enthusiasm for the plan.
Here’s how you can avoid a plan that butchers excitement amongst your employees, and get back to cutting costs and recruiting top talent.
Look at the Real Costs
For most employers the biggest line item on their budgets is payroll. Not only do they pay the base wage (on a salary or per-hour basis), but they must also pay the employer portion of taxes for Social Security, Medicare & Unemployment Insurance.
What often isn’t figured into the equation is that with proper plan design, not only can your retirement plan eliminate the need to pay some payroll taxes, but you may receive tax credits and tax deductions for offering the plan.
In some cases, you can largely eliminate the cost of providing this benefit and inspire your employees at the same time. It just takes crafting the right plan for your business.
Creating Your Retirement Plans
Hidden costs kill employee’s dream retirement and kill productivity for your business. The right plan can boost productivity, and reward the employee by helping the employee achieve their ideal retirement. All without significantly increasing cost.
At Confidence Wealth Management, we work with employers, trustees and human resources on properly designing employer-sponsored plans that can benefit you as much as it can also benefit your employees.
If you’re an employer who is considering offering a retirement plan, or if you already have a plan but would like to review and potentially improve it, we can help.
We specialize in designing custom-made plans and implementing retirement plan services that move you toward your goals and the best results for the company, the plan, and the participants while also helping you avoid the most common mistakes that may trigger an audit.
We create winning strategies and solutions for our clients. Click below to set up a consultation or contact us for more information.
