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(StatePoint) Workplace retirement savings plans are an excellent way to invest in your future, and the earlier you start, the more opportunity your savings have to grow. Typically automated through payroll deductions, contributions to a plan like a 401(k) or 403(b) are tax-advantaged and easy to make. Recent research by Edward Jones and Morning Consult shows that three in five Americans who have access to a workplace retirement plan contribute, however 59% of all Americans’ employers do not offer one, leaving a gap in financial access and education at a critical entry point for investing. For local business owners – who are responsible for creating two out of every three new jobs in the U.S. economy, according to the National Business Association – implementing retirement savings benefits can be challenging. Fortunately, new efforts are being made to support businesses of all sizes in helping their employees reach their financial goals. “Edward Jones is in the process of expanding its retirement plan product shelf offered through our more than 20,000 financial advisors to include Nationwide and Voya. The firm has also invested in new technologies like Aboon, which streamlines retirement plan design and administration, and Addition Wealth, a digital financial wellness platform providing personalized financial education for clients. With our vast branch network in 68% of U.S. counties, we are well-positioned to serve small- to mid-size businesses in need of workplace solutions, and ultimately, their employees,” says Alyssa (Lysa) Harper, principal and head of the Workplace Segment at Edward Jones. “Local business owners are the backbone of communities. We’re hopeful the investments we are making will meet more people where they are and offer more business owners and their employees the advice, products and education they need throughout their financial journey,” Harper adds. If you are offered a workplace retirement plan, following these tips can help you make the most of it: Start now. Savings can grow over time, making it valuable to start as early as you can – even if you’re decades away from retirement. Start with the match. At a minimum, contribute enough to your employer’s retirement savings plan to earn your employer’s matching contribution, if one is offered. Ultimately though, you’ll want to develop a personalized goal, with saving 10% to 15% of your income being a great milestone to work toward. Make progress. Consider increasing your savings rate by 1% each year. Some plans even offer an auto-escalation option, making this easy. Leverage windfalls. Reserve a certain dollar amount or percent of future pay raises, bonuses or financial windfalls to go toward your retirement savings. Get assistance. Fifty-two percent of Americans say advice from a financial advisor would make them more likely to participate in a workplace retirement plan, according to research from Edward Jones and Morning Consult. Reach out to a financial advisor who can review your situation and provide personalized recommendations for you. A workplace retirement plan can be a key part of a retirement savings strategy. Fortunately, new solutions being offered to businesses of all sizes are expanding access to retirement savings plans to more working Americans.
