Employer-sponsored retirement plans top the list of benefits sought after by job candidates. Offering a retirement plan helps every employer attract and retain great talent, making it more important than ever to offer a retirement savings plan.
Experts estimate that American workers will need to save 70% to 90% of their pre-retirement income to maintain their standard of living upon retirement. Lower-income workers may need even more, and an employer-sponsored retirement plan is one of the simplest ways to do that.
A variety of plan options are available, ranging from a simple IRA to a 401(k) or 403(b), each of which has its own tax advantages. Recent tax law changes have increased deductible contribution limits for IRAs and 401(k) plans. Plan participants age 50 and older also can save additional amounts to catch up on saving as they near retirement. And all employees can benefit from deferring the tax on contributions until the time of distribution, as well as the tax due on any investment gains.