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Choosing the right program for retirement planning is crucial for long-term financial stability. Using a PEO can allow small business employees access to benefits that typically larger businesses can provide, like 401k plans and various insurance plans. With that being said, only 53% of small and mid-sized businesses offer a retirement plan; 37% of those not offering a plan cited cost as a reason. [1] Continue reading to learn why you should use your PEOs 401k retirement plan.
81% of employees ranked retirement savings and planning benefits as the most important factor when working for a company. [2] Retirement plans allow employees to harness financial security for the future, which in turn helps employers retain their staff. Partnering with a PEO can help employers navigate regulatory compliance and provide support when choosing the best plan for their employees.
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The five best professional employer organization (PEO) services to look for
Deciding the right retirement plan for your business can be challenging. Luckily, PEOs help guide you through these complexities by managing the administrative tasks for these plans, compliance regulations, and tax law, for instance. As an employer, you can find relief by partnering with a PEO. They can reduce the risk of dealing with financial or legal issues while allowing you to focus on your investment options with the peace of mind that your 401k is in the right hands.
PEOs typically provide services to various organizations, allowing them to obtain resources to offer retirement plans. PEOs can reach a variety of markets and provide higher-quality plans with a myriad of investment options that smaller businesses typically wouldn’t have access to. This advantage allows PEOs to negotiate better-suited terms with financial providers and lower fees. Overall, this will benefit you and the employee.
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How a PEO can help your business with benefits administration
PEOs can offer guidance and flexibility when determining investment objectives that align with your financial goals. PEOs can also connect you and your employees to financial advisors to help them better understand the process and make the best-suited decisions. PEOs can provide multiple investment options, like stocks and bonds, and more niche options, like real estate funds, as this allows the employee to make decisions based on their interests and goals, diversifying their portfolio.
How we can help
Partnering with your PEOs 401K plan is a wise investment for your future. At PER, we provide a unique offering through the Professional Employer Resources Retirement Savings Plan, a Multiple Employer Plan (MEP) 401(k). Instead of managing your plan, you can join ours as an adopting employer. By participating in our expansive plan, you’ll gain access to the premium benefits usually reserved for only the largest corporations, but with significantly less effort on your part.
As part of our comprehensive human resources services, we also offer payroll management, benefits administration, workers’ compensation, and more.
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Sources:
1: U.S. Department of Labor | Fact Sheet: Final Rule on Association Retirement Plans (ARPs)
2: SHRM | Employee Benefits Survey
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