Resource of the Month: Planning for the Sandwich Generation

Robin Weingast financial planning for couplesAre you raising children (or have your adult children come back home), saving for your own retirement, and also involved in decisions about your own parents’ healthcare and financial planning? If so, then you’re one of the increasing number of people who are part of “The Sandwich Generation,” which comes with practical and financial complications.

Hitting your financial goals as a member of The Sandwich Generation can be difficult, which is why we’re offering you a Resource of the Month with tips on how to keep your eye on your goals, even as your many needs compete for your attention.

Click here to Download Planning for the Sandwich Generation.

Need to Know: The High Cost of Employees Not Retiring on Time

Why does Retirement Age Matter?

In retirement planning, we often focus on the “end goal” — making plans related to the age we want to be when we retire, and what our spending level needs are after we don’t have a steady income coming in from our jobs.

Retirement Book On Laptop Showing Pension Plans And Elderly Advices

But do you know the effect of what happens when we aren’t ready to retire on time? And do you know what that means for your company if an employee can’t retire on schedule?

At a recent session of “Plan Sponsor University,” Tom Foster of MassMutual, outlined some key risks to a company (and its employees) when someone can’t retire on schedule and has to work well beyond the standard retirement age. They include:

Lower productivity: Workers who have to stay on longer than the typical retirement age may become less and less productive the older they get. This affects the bottom line of your company in significant ways.

Higher healthcare and workers compensation costs: On average, older workers have higher healthcare costs and premiums as well as higher worker’s compensation rates that must be paid by employers. These costs can also be passed on to other employees.

Higher salary costs: Seasoned employees are typically compensated at a higher rate than entry-level employees.

Unexpected turnover: Older employees often hold up the advancement of younger, entry-level employees, who cannot be promoted because their more experienced colleagues occupy senior-level positions. Without growth opportunities, younger employees will seek out new positions where they have more chance to advance their own careers.

Financial wellness: Studies show that employees who are financially stressed — and we can assume that someone working well beyond retirement age will be financially stressed —are prone to working more slowly and may take more sick days.

What’s the solution?

A company-sponsored defined contribution plan, such as a 401(k), is a key way to ensure the viability of your company. Not only can it help your employees reach their retirement goals, it will also set your company up to succeed, by ensuring that your employees are retiring on time and not holding up the growth of your company.

Want to evaluate your retirement plan or need assistance setting up a company sponsored retirement plan? Contact the Robin S. Weingast & Associates team today to help!

Monthly Podcast: Saving and Spending: Secrets of Centenarians

100-birthday_weingastDid you know that centenarians are the fastest growing segment of the American population? The odds of living a long and vivacious life are increasing all the time, so how do we make the most out of our years? This month on our podcast, author Steve Franklin traveled the country interviewing centenarians, and he shares their wisdom with you!

>>>Click here to listen to this month’s podcast!<<<