This week is National Save for Retirement Week, a time for employees to reflect on their personal retirement goals and determine if they are on target to reach them. ADP® Retirement Services provides the resources, materials and online tools employees need to prepare for their financial future. In the spirit of this week, ADP Retirement Services is offering tips to save for retirement and make planning for the future as simple as possible.
“Americans know they should save for retirement, but the truth is many of us aren’t saving enough,” said Chris Augelli, vice president, product marketing and business development at ADP Retirement Services. “A Pew Research study shows that younger workers, in particular, are more willing to save for retirement if their employers can make the process as painless as possible. By choosing the right kind of plan and maintaining an open dialogue with employees, employers have the opportunity to help reverse the trend of a lack of retirement readiness and motivate employees to strengthen their own retirement security.”
Tips for employers
Choose a plan that’s:
- Easy to manage. Time is your most precious commodity. That’s why it’s important to choose a retirement plan provider who can save you time on administrative tasks through integrated solutions and support tools so you can get back to business.
- Aligned with your interests. Your provider should provide complete transparency about plan fees so you know exactly what you’re paying and have an unbiased investment approach—free from any conflicts of interest.
- Focused on retirement readiness. Engaging and educating employees about your plan’s benefits is essential to helping them maximize the full potential of the plan. Education materials and workshops help them determine how much they need to save and make informed investment savings decisions.
Tips for Employees:
- In their 20s and 30s – At a minimum, your employees should contribute enough to get the plan match and aim to increase their contributions over time.
- In their 40s – By now, your employees should consider saving the maximum allowed which is $17,000 in 2012. They should regularly calculate their “retirement paycheck” and make sure it is invested appropriately.
- In their 50s – This is the time for employees to stay focused on their retirement goals and take steps to catch up, if necessary. There is still time to close the gap on a shortfall by saving more.
- In their 60s – At this stage in life, your employees should give their retirement budgets a test drive by living on less and saving what’s left over. Now is the time to determine if they need to work longer and delay taking Social Security to maximize their benefit.
Santiago Navarro, director of human resources for New Jersey- based Camfil Farr, Inc., said, “ADP Retirement Services has provided us a user-friendly vehicle for our employees to help them become retirement ready. Through our partnership with ADP, we have gotten great satisfaction seeing how education really helps our employees prepare for retirement. It also gives us great peace of mind seeing how keeping our employees engaged in the planning and saving process can help them maintain their standard of living throughout their retirement years.”
For more information about ADP Retirement Services, visit www.adp.com/401k or call 800-432-401k.