October is National Retirement Security Month

Posted on Oct 9, 2024

October is National Retirement Security Month, an annual campaign to raise awareness about retirement planning. This initiative offers employers a unique opportunity to support their employees' financial futures by encouraging smart retirement savings strategies. In today’s dynamic economy, many workers feel overwhelmed by the complexity of retirement planning, making it more important than ever for employers to step up and guide them toward financial security.

For Employers:

Education plays a key role in motivating employees to save. Employers can host workshops or provide online resources that explain the importance of retirement savings and demystify concepts like compound interest, tax advantages, and the risk of under-saving. Financial literacy empowers employees to make informed decisions, while regular communication—whether through emails or company newsletters—keeps retirement planning top of mind.

Another vital step employers can take is offering employees automatic enrollment in retirement savings plans. Automatic enrollment ensures employees are saving without needing to take the first step themselves. Automatic increases in contribution rates can also help employees save more each year with minimal effort.

Creating a culture of financial wellness benefits both the employee and the employer. Workers with greater retirement security are likely to be more focused and less stressed, knowing they are building a stable future. By actively encouraging retirement savings, employers can foster a loyal, financially secure workforce ready to thrive both now and in the years to come.

For Employees:

Social Security offers substantial retirement benefits, but for most Americans, it isn't sufficient on its own to ensure a comfortable retirement. The Social Security Administration (SSA) offers five tips for employees to help them with retirement planning:

1.  Review your Social Security Statement by creating or signing in to your personal my Social Security Account. Your statement has your earnings record and estimates of future retirement benefits.
2.  Use the retirement age calculator to find your full retirement age.
3.  Use the SSA’s benefit calculator to compare the effects of early or delayed retirement based on the different start dates you enter. 
4.  Check out the earnings test calculator to find out how your earnings may affect your benefits. 
5.  Use the life expectancy calendar to get the average number of years you’ll spend in retirement.

This material is provided for informational purposes only, and is not intended as authoritative guidance, legal advice, or assurance of compliance with state and federal regulations.