How to Overcome 401(k) Plan Objections

July 12, 2017
By

Category: Zenefits, Benefits

When we speak to businesses about getting their company ramped on all things HR, we often chat about 401(k)s. Zenefits has partnered with best in breed business apps to bring you an easier way to connect your employees with the programming they’ve been asking you for. Our partners at PAi (CoPilot) speak to common objections you may face when advocating for a 401(k) plan, and how you can work through them. Don’t waste another moment! Get started on investing in your team, your business and your future today. 

Objection #1: My employees aren’t interested

Two recent statistics show that 69% of private sector, small business workers participate in an employer sponsored retirement plan (1) and that 62% of employees look to their employer for help in achieving financial security through employee benefits (2).

You can attract and retain employees by putting a retirement education program in place. An ongoing, successful education plan will convey the importance of saving for retirement and show your commitment to helping your employees own their retirement readiness. 

Objection #2: Retirement plans cost too much

Don’t always assume a 401(k) plan is something you cannot afford. Not only are there cost-effective retirement plan options, but the tax-savings often make up a portion of the costs.

A retirement plan enhances the benefits you offer employees. By establishing a 401(k), you’re giving your employees the opportunity to save for the future. You can generally obtain tax deductions any on contributions you make to the plan.

If you’re implementing a brand new retirement plan, you could get a federal tax credit up to $500 per year for the first 3 years.

Objection #3: I don’t know enough about sponsoring a retirement plan

You aren’t expected to be the expert on all things retirement, that’s why Zenefits has partnered with PAi, an established plan administrator, to offer you CoPilot. PAi will assist you in selecting the right plan, setting up your plan, helping with ongoing plan maintenance and any retirement education for your employees. Retirement plans offer many benefits:

  • Reduce your tax liability
  • Attract and retain talented employees
  • Allow your employees to be prepared for retirement

Objection #4: I don’t want the fiduciary responsibilities of a 401(k) plan

While that’s a fair concern, you don’t have to navigate these waters alone. A popular way to reduce your investment fiduciary responsibilities is through a 3(38) Investment Manager. They will take away the investment selection and monitoring responsibilities (along with other fiduciary responsibilities) from you.

To address these questions and more, join the Zenefits and PAi/CoPilot teams to learn more about the ins and outs of setting up a 401(k) program. In this session, we’ll dive into  what a 401(k) plan consists of, how to go about getting started, as well as the many benefits that come about for your team when you invest in them – register here to join us.

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

CoPilot is a bundled retirement service and is not an independent entity. Services for CoPilot are provided by PAi, PAi Trust Company, Inc. and Employer Retirement Investment Advisors, LLC, (eRIA) all of which are affiliated business entities under common control and ownership interest. Investment advisory services are provided by eRIA, a registered investment adviser. eRIA’s Form ADV Part 2A (Client Brochure) is available by contacting eRIA at 877-357-7031.

Sources:

1 National Compensation Survey: Employee Benefits in the US, March 2015, BLS 2 MetLife Employee Benefit Trends Study, 2016

2 MetLife Employee Benefit Trends Study, 2016

About

CoPilot is a managed retirement savings service that helps you understand how your savings decisions really affect your retirement. CoPilot ditches the complex charts and calculations, and translates your dollars into the only thing that matters - how many years you can afford to be retired.

Category: Zenefits, Benefits


You might also like