Are your Employees Prepared for Retirement?
Organizations can face unintended consequences when retirement-eligible employees remain working because they have not saved enough in their company’s retirement plan.  This delay can be costly for employers; studies show employer costs can run $10,000 per year for every employee 65 and older who does not retire. These costs are attributed to Higher workers comp costs (56% increase, Medical costs 50% higher), higher benefits premiums costs (health care 4x’s higher, disability 15x’s higher) and Increased disability instances (42% increase), According to the 2014 Retirement Planscape® by Cogent Reports™.

Beyond the measurable costs, business may also experience a less engaged and productive workforce, and more employee turnover by critical talent whose career paths are blocked by those delaying retirement.  Raising the question, what is your true labor cost?

Further, if there is low participation and deferral amounts from non-highly compensated employee (NHCE) this limits the contribution amounts owners and highly compensated employees (HCE) can defer.  Therefore, Potentially delaying their retirement as well.   (If you are getting contributions back at the end of the year, you need help increasing participation and deferral percentages).

The first step in helping participants succeed is getting employees enrolled in the 401k plan and savings at a higher rate. We believe it takes a strategic effort on our part.The Printers401k® Plan Success by Design program helps promote participant success. We believe our process leads to higher enrollment, increased contribution rates, and improved financial education for the plan participants. I have provided some examples of recent results we were able to achieve for our new members.

Example Company 1:

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Note: HCE can defer 2% above the NHCE rate. In this example that would be 7.19% plus catch up if you are over the age of 50.

Example Company 2:

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Note: HCE can defer 2% above the NHCE rate. In this example that would be 11% plus catch up if you are over the age of 50.

Example Company 3:

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Note: HCE can defer 2% above the NHCE rate. In this example that would be 7.12% plus catch up if you are over the age of 50.
Joseph P. Trybula, CFP®, AIF®

Joseph P. Trybula, CFP®, AIF®

Joe is the Vice President of Diversified Financial Advisors, LLC (www.printers401k.com/ ) and a Registered Investment Adviser with more than 20 years of experience. He specializes in providing professional management of corporate retirement programs, including investment advisory management and consulting services. Working closely with his clients, he focuses on organizing, formalizing, implementing and monitoring programs designed to meet their ERISA fiduciary responsibilities.

Certified as a CERTIFIED FINANCIAL PLANNER™ professional and an Accredited Investment Fiduciary®, Joe has advanced training, education, and knowledge in both the holistic financial planning process as well as fiduciary standards of care and their application to the investment management process.