We all know that retirement planning is important, and we also know that the best way to prepare for our golden years is to start saving early. Traditional pension plans are generally limited to the public sector and a few large unions, so most workers save for their retirements by placing funds in IRAs or 401(k) plans offered by their employers. This arrangement is fine for disciplined savers, but many Americans allow short-term problems to distract them from their long-term goals.
Unfortunately, this arrangement is creating a looming problem because people are living longer and longer lives. According to figures from the Centers for Disease Control and Prevention, life expectancy in the United States was 77.3 years. By 2060, Americans are expected to live to an average age of 85.6 years. This means that failing to start saving for retirement early could be a mistake that could cost you in the long run.
Americans are Struggling to Save
American workers know this and want to put money away for their retirements, but many of them find it very difficult to save. A study conducted recently by the federal reserve revealed that about four in 10 Americans would struggle to raise $400 to cover an unexpected bill or emergency expense, and debt is usually to blame. The average credit card interest rate in the United States has climbed to 18 percent, and college graduates enter the workforce with tens of thousands of dollars of inescapable debt.
There are Many Underused 401(k)s
The government encourages workers to save for the future with tax credits and deductions, but this does not seem to be enough of an inducement. Most employed Americans have access to 401(k) plans, but less than a third of them invest regularly for their retirements. Some people simply don’t have enough money to save for retirement, while others are put off by all the paperwork involved. What workers want is a way to plan for retirement that is as easy for them as a traditional pension was for their parents and grandparents. Such a product is now available.
Why SaveDay 401(k) was Started
SaveDay was launched to make setting up and enrolling in a 401(k) plan seamless and easy and the company uses technology to make this possible. SaveDay’s intuitive interface simplifies the onboarding process for both employers and workers, and it also makes it easy for employees to set retirement goals and decide how much to contribute. Here are some of the benefits SaveDay offers.
SaveDay Employer Benefits
SaveDay is an attractive retirement option for employers because set up is easy, the benefits for workers are numerous and very little day-to-day administration is required. The reasons more and more employers are turning to SaveDay to set up 401(k) plans include:
- Fast set up: Setting up a 401(k) plan with SaveDay only takes about 15 minutes.
- No fees: Employers do not pay set up, monthly or per employee fees when they set up a 401(k) plan with SaveDay.
- Flexible enrollment: Workers can be signed up automatically, or they can decide to enroll on their own.
- Simplicity: SaveDay works with payroll processing companies to collect workers’ contributions.
- Outsourced housekeeping: SaveDay manages the plan and takes care of compliance testing and housekeeping chores like adding new employees and removing terminated workers.
- Detailed records: In addition to managing the plan, SaveDay tracks 401(k) plan transactions, balances, deferrals and withholdings.
- ERISA fiduciary: All SaveDay 401(k) plans are created and managed to comply with ERISA standards, and the company acts as the employer’s ERISA fiduciary.
- Seamless processing: SaveDay can process pre-tax, employer-matching and Roth contributions simultaneously.
- Easy payroll integration: SaveDay integrates with all major payroll providers.
SaveDay Worker Benefits
Workers like SaveDay because the company takes the stress out of planning for retirement. They also don’t have to worry too much about losing their retirement funds because SaveDay follows the Modern Portfolio Theory, which uses diversification to reduce risk. Here are some of the ways SaveDay makes it easier for workers to save for retirement:
- Personalized investment advice: After answering three questions that are designed to gauge their tolerance for risk, employees receive personalized and diversified investment portfolio suggestions. They can also browse other portfolios and make their own choices.
- Easy to use dashboard: Enrolled workers use an intuitive dashboard to check their accounts and see how their portfolios are performing.
- Goal setting: The dashboard also creates interactive charts and calculates financial projections, so employees can keep track of their goals and adjust their contributions accordingly.
- Diversified investments: SaveDay 401(k) portfolios are invested in US and international stocks for growth, US and international bonds for stability and US Treasury Inflation-Protected Securities for protection against unforeseen events.
- Responsive customer service: SaveDay offers customer support by phone, email and live chat.
A Complete Benefits Solution
Horizon Payroll Solutions offers its clients SaveDay 401(k) plans as a stand-alone option or as part of a complete benefits solution. Helping workers to achieve financial stability improves workforce morale and encourages retention, and leaving mundane administrative tasks to a team of experts allows managers and supervisors to put their skills to more productive use. In addition to SaveDay, we offer employers:
- Flexible StaffCARE: This integrated solution provides hourly workers with affordable health care benefits that they can actually use. There is no minimum participation and little or no cost for employers, and enrolling reduces ACA tax penalties or eliminates them altogether.
- ZayZoon: The employee benefit helps workers to avoid predatory lenders offering payday loans by providing them with access to their earnings before payday. Workers simply use a mobile app to transfer unpaid earnings to a connected bank account in a matter of seconds.
- Norton LifeLock: This benefit offers workers three levels of protection against identity theft, and all of them are backed by technology that is constantly being updated and refined to identify potential threats and prevent cybercrime.
- BenefitEd: Many employees run into financial difficulties because of debt. BenefitEd helps workers with educational debt to pay off their loans sooner, and it also provides them with access to lenders with refinancing packages that could lower their payments.
Service and Value
Horizon Payroll Solutions is dedicated to saving its clients time and money and helping them to attract and retain a happy and enthusiastic workforce. We have a flexible approach and customize our solutions based on the needs of the client, and we back up our products with customer service that care about your business. If you would like to learn more about the outsourcing services and benefits solutions we offer to small and medium-sized businesses, you can reach us by calling (888) 434-8244 or filling out our online form.