If you’re part of a company or organization like an association, or group who is looking for ways to pool employees’ retirement funds in order to provide better benefits, please read on! There are many considerations when it comes to retirement planning; what if I can’t work anymore? What if I die? What about my spouse and children?  But the decisions you make about your retirement today will affect the rest of your life. To help with this decision, we’ve put together this blog post on Group Retirement Plan.            

The benefits of a group retirement plan are numerous. In addition to being able to consolidate your employees’ retirement funds, it can also streamline administrative tasks, create a one-stop shop for all your employee benefits needs, or even reduce the risk of insolvency.        

At Benefits Alliance Group, we are fans of group plans; they’re a great way to ensure your employees’ retirement funds are well managed. So, let’s cover a few questions you may have about group retirement plans.   

What Does a Group Retirement Plan Achieve?

Pooling the contributions from multiple employees allows for the economies of scale in an attempt to reduce overall costs. Not only that, but it also provides greater benefits for all of your employees. Especially if there is a decrease in the number of participants.       

One of the most important financial decisions you can make is selecting a retirement plan that makes the most sense for your needs.  There are many benefits to retirement plans, and we’ll help you figure out which one is best for you. You may also want to check with your company or organization’s human resources department for advice.     

Retirement plans are a good way to save for retirement. But they are not designed to be, nor should they be viewed as, automatic funds. You must  take responsibility for your plan and manage it through the years. A good retirement plan will meet your needs.  You should consider these factors when making a decision on whether to participate in a retirement plan:    

Sticking with the plan: Many people find that they can easily stick with their retirement plan, even if they change jobs or move away from where they work. After a while, they are glad they chose to participate.     

The benefits of participating: The best retirement plans provide tax-deferred growth, which allows you to increase the amount of your money at retirement without it being subject to taxes. You may even be able to withdraw some or all of your funds tax-free if you need the money for a specific purpose. Another great benefit is that many plans will only charge you for what you put into the plan.    

If your company or organization offers a retirement plan, it is also important to make sure you understand the plan and how to use it. Also, if you are not sure about your rate of return on your plan, ask a financial professional. The financial professional should be able to help you understand what rates are realistic for your plans.

You should also understand how the funds invested in any plan work. Make sure that you know what types of funds are available and their average annual rate of return over time. Contact us today!