401(k) Planning to Keep Up with the Speed of Your Life

July 6, 2017
By

Category: Benefits

Principal 401(k) Planning

Can you believe we’re halfway through the fiscal year?! Neither can we. As we enjoy the longer days of summer, we’re taking the opportunity to take stock of our financial wellness. Saving and planning for retirement doesn’t need to be on your daily to-do list, but something worth investing time in to make sure you’re covered for your future. Zenefits has partnered with best in breed businesses to bring you an easier way to connect your employees with the programming they’ve been asking you for. In this post, our partners at Principal speak to the value that implementing a 401(k) program will bring not only to your business, but to the happiness and financial confidence of your employee base. 

Who doesn’t look for simpler ways to save?

In our day to day lives, things happen that disrupt our routines, and, dependent on its scale, those events can throw us for a loop. Maybe it’s a big family wedding, a graduation party, or maybe a time when the kids all get sick in succession. While we can’t always forecast these events, there are simple buffers we can put in place to help us through those unplanned hurdles. With the help of forward-thinking technology and advanced planning, we can continue moving full speed ahead regardless of the unplanned knee surgeries, demanding schedules, and everything in between.

Financial Wellness to Keep Up with the Speed of Your Life

In between these spontaneous moments of change, things tend to go back to ‘normal’. Little, dependable repetitions like the monthly delivery of 40-pound bag of dog food that arrives on your doorstep alongside your delivered dry cleaning are concrete reminders that you can automate certain necessities. The same peace of mind should apply for you and your savings. We’ve seen that same grin on the faces of participants who are automatically enrolled in their company’s retirement plan with annual contribution escalation. And those who decided to use their plan’s opt-in deferral increase feature to meet their savings goals. The reason for relief? No more fretting about doing what they know they should be doing anyway.

And research supports this. Employees want, are eager to get a nudge toward savings. Whether employees are automatically enrolled or they use a smartphone to text enroll(1) while waiting for appetizers on a Friday night, they can take steps to meet their financial goals with very little effort.

There’s nothing like convenience

Amazon, Apple and Zappos prove that we love convenience. So why not apply that same logic to reaching important financial goals? As an employer, showing investment in your employee’s future signifies your desire to retain and attract top talent. Making a 401(k) plan accessible to your team is a key step in this process.

Only 63 percent of American workers are saving for retirement and many are saving at desperately low levels. Just 22 percent of workers today are very confident they will have enough money saved to live comfortably in retirement. (2)

Offering convenient ways to improve savings habits help drive better outcomes by integrating positive behaviors into daily routines. It also helps dissolve real money insecurities in the workplace — stressors that are linked to lower productivity, increased absenteeism, and physical, emotional and mental tensions.

Saving for retirement: let’s do this!

We all need and want to save, and having an employer who eases the process is a win for all parties involved. Saving for retirement shouldn’t fall off the radar because they can’t attend a meeting, complete a form or remember to get online to increase contributions.

Innovative plan design, intuitive participant services and engaging digital experiences can help your employees continue to meet their financial goals, even when life takes over. And it will take over. But have no fear; you have the power to help your employees be ready for it all.

Are you an employee or employer hoping to learn more about the ins and outs of 401(k)s? Join us for a webinar on August 8th where we’ll dive into everything you need to know. Register here.

To learn more about what integrations are accessible through your Zenefits dashboard, please visit www.zenefits.com/integrated-apps.

This document is intended to be educational in nature and is not intended to be taken as a recommendation.  

Enrollment by text message gives participants a quick way to select their contribution amount. They must still select investment options online or by phone.

Employee Benefits Research Institute (EBRI) Retirement Confidence Survey, March 2016.

This document is intended to be educational in nature and is not intended to be taken as a recommendation.

Insurance products and plan administrative services are provided by Principal Life Insurance Company, a member of the Principal Financial Group®, Des Moines, IA 50392.

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About

Whether you’re a business, an institutional investor, or an individual preparing for the future, Principal can help you reach your goals through our best in class retirement services, insurance solutions, and asset management services.

Category: Benefits


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