Retirement planning is one evolving area where employees are seeking out solutions that assist them and their family members in building strong financial futures. According to the Employee Benefits Research Institute, over four out of five workers say their employer converting retirement savings into regular income would be helpful. Additionally, 25 percent of employees said they feel their workplace retirement plan would be better if there were more investment options designed for individuals after retirement.
Financial benefits provider, Unum, is tackling this demand by expanding its own retirement program with a new, low-cost, professionally managed fund, offered through Fidelity Investments. The fund allows employees to invest their existing 401(k) and other assets and then determine how they will utilize it during retirement. Employees get to choose how often they receive withdrawal payments, and they will have the option to receive money on a bi-weekly basis, similar to their payroll process while they were employed.
“Getting ready for retirement can be daunting, but this solution makes me feel more prepared for what’s ahead. It gives me a sense of financial stability and will help ease the transition into retirement.” — Unum Employee
Carl Gagnon, Assistance Vice President of Unum Global Financial Well-Being says, “The benefit was designed to future-proof an employee’s retirement income as they get closer to transitioning out of the workforce and into retirement. We really want to target the employees who are starting that three-to-five-year life path towards leaving the company and retiring.”
When employees are kept informed and engaged in their employee benefits program, they are empowered to make thoughtful decisions that protect their health and financial well-being. Educating employees about the new resources can help them achieve their short and long-term financial goals. A quality retirement plan is a carrot that can encourage loyalty and productivity among employees. A competitive retirement plan can also motivate younger employees by giving them the opportunity to grow wealth within the company.
Information provided by Employee Benefit News.
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