Corporate Retirement Plans
You may be wondering what the benefits of having good corporate retirement plans are and the difference between a Defined Benefit or Defined Contribution. At PolicySmart®, we know that when you want to retain talented and hard-working employees, having a solid retirement plan can be a vital key feature. Retirement plans not only benefit your employees but they will benefit your organization as well, and they can be affordable and easy-to-use. If you would like to learn more about retirement plans for your business and what kinds of options there are for you, give our team a call. We care about helping you grow your business and setting you and your employees up for future success.
What can be challenging about retirement plans?
If you do not know much about retirement plans, you might wish you could just get an out-of-the-box option. However, retirement plans are crucial to many businesses and you want to ensure they fit your needs (the employer) as well as the needs of your employees. Especially when you are not in the business of retirement planning, you may not have the mindset to consider all of the best options. That is where we come in. We understand the ins and outs of retirement planning and can match you to the appropriate record keeper or advisor who will share in the administrative tasks while you keep running your business.
Is a 401(k) the same as a pension plan?
When you are trying to make decisions about plans for corporate retirement, you may be wondering what the difference is between a 401(k) and a pension plan.
- 401(k). A 401(k) is extremely popular and it is also known as a “Defined-Contribution plan.” This means that both the employer and the employee can contribute funds into the retirement plan. Many employees like this option because the employer will typically match (up to a certain percent) the funds placed into the plan.
- Pension Plans. A pension plan, on the other hand, is much different. Known as a “Defined-Benefit plan,” an employer will make financial contributions that go to a specific fund for the benefit of the employee. These funds are invested and when the investment earns money it can be made available to the employee when they retire.
How can I learn more about retirement and different corporate plans?
If you would like to learn more about the types of retirement plans for corporate businesses that would work best for you and your employees, call the reliable team at PolicySmart® at (888) 873-1982 now.