Having a decent income is key to having a good and healthy retirement. Whether you worked a high, middle or low income job, it is important that older adults are not struggling to cover the basic necessities such as food and housing.
The province of Ontario will be introducing the Ontario Retirement Pension Plan (ORPP) in 2017 that will help to supplement the Canadian Pension Plan by replacing about 15% of a person’s earnings to a maximum of $90,000 for people who do not have a pension plan provided by their employer. This move will help low- to middle-income families to have access to a better future and a better income plan in retirement. As the province will be rolling that out soon, it is important to start thinking of retirement plans – regardless of age.
Designing a good retirement plan will play a big role in employee success – you want to best suit your employees needs and objectives. If your employee is happy and secure in their plans, they will probably be happier in the jobs which will be of great benefit to you.
Retirement Plan Trends:
In the United States they have 401K, in Canada we have RRSP’s (Registered Retirement Savings Plans), although they are not exactly the same, they do have similarities. As an employer, you might want to consider these things when setting up retirement plan for your employees.
- Enroll your employees automatically.
- Guided investment solutions are better.
- Have a matching program.
Help your employees start actively saving for their retirement. This will help your employees to save more money from the beginning, so they won’t even miss it in their bank accounts. It will save you time and effort, plus it will help your employees to enjoy a healthier retirement.
Many employees would prefer the hands off approach, while many may want it the other way around. Work with a professional in the financial field who can help you to build a model portfolio – which will help you to come up with the best solutions for your employees.
If your company is able to do so, this is a great idaea. This is a way to attract employees to the plan and give them the incentive to save even more. Not only do you create a work environment where employee saving is of high importance but you help your employees too.