Ensuring Your Employees' Retirement Financial Security

ARTICLE | June 25, 2024

Authored by Vasquez + Company

As employees approach retirement, their financial readiness can vary significantly. This article explores the challenges and uncertainties facing future retirees, particularly Baby Boomers and Generation Xers. It highlights the importance of catch-up contributions, the impact of Social Security, and the financial risks associated with health, marital, and employment changes close to retirement age. Additionally, it offers practical advice on how to bolster retirement savings and improve financial security.

Key Points:

  • Catch-Up Contributions: Employees aged 50 or older can make additional contributions to 401(k) or 403(b) plans.
  • Retirement Risk Index: A study by Boston College indicates that 51% of working-age households may need to alter their standard of living upon retirement.
  • Social Security Concerns: The strain on Social Security and the rising retirement age pose significant challenges.
  • Financial Risks: Health, marital, and employment issues can severely impact retirement savings.
  • Future Outlook: Increasing savings by at least 3% and extending working years by two years can substantially improve retirement security.

For more information, read the full article here.