5 ways to help your employees retire strong

Employees saved more for retirement, despite a global pandemic. But they still need the right employer-provided tools and guidance to stay on track.

One in three employees ramped up their retirement savings last year, according to a study by Fidelity Investments. Women and Gen Z, demographics that Employer contributions significantly helped these workers plan for the future; individuals receiving employer matches to their retirement fund experienced savings of 11% for 403(b) accounts and 13.5% for 401(k) accounts.

“Last year was challenging and we still may have rough patches ahead, so it’s more important than ever to stay the course and keep focused on the key steps that will help investors reach their retirement goals,” Kevin Barry, president of workplace investing at Fidelity Investments, said in a statement.

Employers have been taking a more holistic approach to employee wellness and recognize the important role they can play in helping employees secure their financial future. Employees are looking for more than just a 401(k) match. Scroll through this list to learn about a host of programs, legislation and advice that will help workers successfully plan for a secure retirement:

Officials looking to plug retirement gaps with state plans

As more states advance retirement plans with mandates for private-sector businesses, officials behind those plans say the state option is needed to make a retirement-savings option available for the segment of workers least likely to have access to one through an employer.

Illinois, Oregon and California have been early adopters of a state-run auto-enrollment program with a mandate for employers to offer a qualified retirement plan — the state's or a private-sector offering.

Prudential shares the top tools to helping employees reach retirement

Harry Dalessio, the head of institutional retirement plan services at Prudential Retirement, shared the three core components Prudential recommends employers implement to help employees be successful: smart plan design, creating an income stream for life and reinforcing and enabling financial wellness.

Retirement programs should also pinpoint areas where their savings may be vulnerable, like healthcare.

Employees can use their student loans to save for retirement

Workers won’t have to choose between paying off their student loans and saving for retirement with a new benefit from CommonBond, a student loan repayment benefit provider.

The company launched a product last year that allows employees who aren’t saving for retirement to receive an employer contribution to their retirement fund — as long as they’re paying off student debt. The program, called Retirement Contribution, tracks and verifies employee student loan payments so they can qualify for employer contributions.

Equity compensation is the next hot benefit, Morgan Stanley says

With retirement benefits, like the 401(k) and others, employee money is invested in other companies; employees have no control over the performance of their shares — they can only sit tight and hope for the best. But with equity compensation, employees receive a stake in their own company — their hard work can actually help drive up the value of their shares.

Once they receive their shares, employees can invest their payout in the retirement program of their choice.

Top 10 states for a healthy and affordable retirement

Having enough money to live in retirement is a major hurdle for many employees. Figuring out where those retirement funds and 401(k) earnings will go the farthest is a critical piece to deciding when — and where — to retire.

A recent survey by WalletHub found the best and worst states for retirees. Each state was given a total score out of 100, based on affordability, quality of life and overall health factors.

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