I have a tremendous amount of respect for my clients who offer 401k plans (and those who are looking to start plans) for their employees.
A 401(k) plan is a powerful tool for helping employees save for retirement. But did you know that your plan could also do more than just help your employees with retirement? Here are five ways your 401(k) plan could benefit your employees beyond retirement:
1. Financial wellness education
Offering financial wellness education to your employees can help them make informed decisions about their finances and improve their overall financial health. Your 401(k) plan can be a great vehicle for delivering this education, as it is a benefit that employees are already engaged with.
2. Health and wellness benefits
Some 401(k) plans offer health and wellness benefits, such as discounts on gym memberships or wellness programs. These benefits can help employees stay healthy and reduce healthcare costs for both the employee and employer.
3. Employer contributions
Employer contributions to a 401(k) plan can help employees achieve their retirement savings goals faster. But did you know that employer contributions can also improve employee morale and loyalty? By investing in their employees’ futures, employers can show that they value and appreciate their contributions.
4. Loans and hardship withdrawals
While it’s generally not recommended to take loans or hardship withdrawals from a 401(k) plan, having these options available can provide employees with peace of mind in case of an emergency. Knowing that they have access to their retirement savings in a time of need can reduce financial stress and improve overall wellbeing.
5. Auto-enrollment and auto-escalation
Auto-enrollment and auto-escalation are features that automatically enroll employees in a 401(k) plan and increase their contributions over time. These features can help employees save more for retirement and improve their financial wellness overall.
In conclusion, a 401(k) plan can do more than just help employees save for retirement. It can also provide valuable financial wellness education, health and wellness benefits, improve employee morale and loyalty through employer contributions, provide peace of mind with loans and hardship withdrawals, and help employees save more with auto-enrollment and auto-escalation features. By taking advantage of these additional benefits, you can help your employees achieve financial wellness and improve their overall wellbeing.