Let’s Talk About Retirement

Brooke Hayles asked:


Over the years you’re sure to have encountered someone who’s told you to put some money into a retirement fund if you haven’t yet already. Many parents are now telling their children who’ve just started to make money to put some away for when they retire. Why do these people feel its so important to pass along the message to ’save early’? Probably because they didn’t, and had to scramble to throw together a plan out of sheer necessity.

Really, the premise of planning retirement is quite simple: Save money now because you won’t be working later. Unfortunately, many people don’t realize how very important this is until it’s too late. Believe it or not, even people who would once consider themselves somewhat wealthy, doctors and lawyers, etc., have been reduced into living in low-rental apartment buildings in their golden years because they simply didn’t plan their retirement well enough.

So, since you are reading this it can be assumed that you’ve already realized the first and most important part of planning retirement: Start now. The rest is relatively easy.

Planning Retirement Successfully:

To successfully plan for retirement, there is a measure of dedication and financial responsibility involved. The most pain-free way is to write out a thorough plan, including a budget, and simply stick to it. If you’re lucky enough to be reading this fifteen to twenty years before you plan on retiring, the money you’ll be putting into a long-term savings fund will seem inconsequential. In other words, you won’t feel like you’re missing out on things you could have purchased with the money you’re now saving for retirement with. This is because it will amount to such a small percentage of your current income.

How much money you’ll need to save is calculated on a variety of different things, most importantly, how you’d like to spend your time. Traveling abroad, or staying near the grandkids. Living in a house you’ll have paid off, or adding a cottage by the lake. Really, it’s all about balancing what you want now with what you’ll want then: Bigger house now, or cottage on the lake then? In a perfect world, we’d all have the money for both, but that just isn’t the case sometimes so planning retirement should take you at least a few days worth of thinking, and it should be open to updates whenever something changes. Nothing about planning retirement should be set in stone.

There are many different avenues of income that are associated with retirement, some of which can have confusing terms. The term for saving for your retirement personally and then cashing it all in when you retire is called superannuation. This, unsurprisingly, is the most prominent form of planning retirement financially.

All in all, there’s no better time to start planning for your retirement than right now. Even if you’re not sure what your income will be like in the coming years, it always helps to write down what you think you’d like to be doing when you retire so that you’ll at least have an idea of how much money you’ll need. Though planning retirement can be stressful, remember that not having a plan when you’re suddenly 65 years old is far worse than doing a bit of number crunching now.

Summary:

To successfully plan for retirement, there is a measure of dedication and financial responsibility involved. The most pain-free way is to write out a thorough plan, including a budget, and simply stick to it. While planning retirement can be stressful, remember that not having a plan when you’re suddenly 65 years old is far worse than doing a bit of number crunching now.



BETTE

Allen Bohart asked:


Since the days of FDR and the beginning of Social Security, people have been conditioned to believe that retirement comes at age 65. In more recent years, however, more and more people are yearning to retire at an age where they can more fully enjoy their golden years. Here are some tips for making early retirement a reality for you.

The most important thing to consider for early retirement is your ability to live frugally. If you spend every penny you make now, it’s not likely that you will be able to do any better when you retire. Teaching yourself to live below your means now will take you a long way toward realizing that dream of early retirement.

One area that many people can improve upon is the choice of vehicle they drive. After all, do you really need a new car every 5 years? If you want to retire early, then choosing a good used car is probably a much wiser, not to mention cheaper, alternative. Not only will the car payments be much cheaper (perhaps non-existent if you pay cash for the car), but your insurance premiums are likely to be much cheaper as well.

Another area to concentrate on is your home mortgage. By paying at least one extra mortgage payment per year, you will considerably shorten the term of your loan. The goal here is to pay off your home loan before you retire, so that you have one less payment to worry about when that happy day comes. Not only that, but you will literally save thousands of dollars in extra interest payments over the life of that loan!

Aside from living within your means, you will also want to start some kind of retirement savings account. You should put as much of your disposable income as you can into this account, and you should start that account at as young an age as possible. In this manner you put the magic of compounding interest to work for you. For example, if you were to put 20% of your income into an index fund starting at age 20, chances are you would be able to retire by age 40. Of course, the more you can afford to put into the fund, the earlier you will be able to retire.

The best possible away to approach the retirement savings account is to make it as automatic as possible. One way to do this is to have the money withdrawn from your paycheck each pay period, so that you never see or miss the money. If this kind of thing is not available through your employer, see a financial counselor to help you set this up.

If your employer offers one, then you will definitely want to participate in the 401(k) plan. For most plans, the employer contributes either a matching amount or a one-time yearly payment to your retirement account. That’s free money, and nobody in their right mind would pass that up!

Aside from the 401(k) and the retirement account mentioned above, another possibility to consider is a Roth Individual Retirement Account. There are limits to how much you can contribute to the Roth IRA and you will have to pay a 10% early withdrawal penalty if you take an money out of the account before age 59 1/2. On the flip side, though, any money earned through the Roth IRA is tax-free forever, which is why this type of account is so attractive.

While none of these steps can guarantee you an early retirement, they are all steps in the right direction. If you really want to retire early, then these steps and more will be required for you to do so. After all, what have you got to lose by trying? At worst, you will retire with more money than you would have had without a savings plan. At best, you may retire much earlier than your co-workers!



KATHRINE

George White asked:


There are few times in life worth looking forward to that are better than retirement, unless it is retiring knowing you will have financial security for you and your family. Most people will spend years working, knowing retirement is going to sneak up on them and for most people proper planning will enable them to enjoy their years doing things with their spouse and family that they did not have time to do while working.

The first few months may be difficult when entering into retirement as bad as many see the habit of working it was something they did every day for many years. They woke up, got ready and left for work and came home in the evening, based on the shift they were working, usually five or six days a week. The first few days may feel like a break, similar to being on vacation and it may take some time before it sinks in that the time for retirement has arrived and there will be no going back to the job.

Retirement is not an acceptable alternative to going to work every day for some people. If they retired after reaching the age for full retirement, there is no problem with finding another job. However, if they took an early retirement at age 62, and began receiving Social Security benefits, they will be penalized for earning the extra money until they reach full retirement age. In most cases, for every two dollars they earn, they will lose one dollar in benefits.

Retiree’s Time Used For Getting Re-acquainted

If couples plan to travel they usually begin almost immediately after their retirement party, and have already set a goal of where they want to go and how long they want to be gone, but most retain their home as a roosting point for the times between travel. Whether it is to go on a second honeymoon or a celebration cruise, they will want time for themselves to celebrate the fact that they will not have to share their time with a job.

For others retirement is a time to participate in hobbies they enjoy but lacked the time due to a hectic work schedule. Outdoor activities are now possible on days other than the weekend when crowds were a problem and prices were higher. Typically, amusement parks have significantly more traffic on weekends and many golf courses have reduced rates on weekdays. Hitting the hot spots with the spouse is a great way to get to know each other after being separated for about a third of the day, everyday.

Retirement also gives people the time to offer their time and talents for charity work or for mentoring others entering the field from which they recently retired. For those who took an early retirement they may be willing to offer their services on a voluntary basis to keep their minds sharp and to offer their experience in various industries to keep busy without risking the loss of their retirement income.

For the most part, retirement is to be the time when people can leave the hassle of work and spend time doing the things they have always wanted to do, but lacked the time. However, if they failed to plan their finances, they find they have the time, but not the money and will go back to work to help pay for extras that they cannot afford on their retirement income.

When it comes time to retire, whether it is early, late or right on time most view retirement with a feeling of relief mixed with anxiety, as they may not be sure of what they will do with themselves. However, whatever they decide to do once they retire, they will likely have the time to do it.



ELVIS

Paul Hata asked:


There are a few things you should keep in mind when planning for your retirement. First of all, you probably shouldn’t hold your breath when it comes to social security being able to cover even a small portion of your retirement if the service even exists in any form of its former self by the time you are facing retirement.

The second thing you need to keep in mind is that your needs upon retirement depend greatly on how you live your life now and how you plan to live once you retire.

There are many who live very conservatively now in an effort to save up their money for retirement and really live it up at that point. The problem is that they are basing their retirement living on their current lifestyle, which is not a good comparison.

The problem is that the vast majority of Americans are earning just enough money through their jobs in order to make ends meet. The idea of finding any money to sock away for retirement for most Americans is difficult at best and absolutely impossible in some situations.

The first step when it comes to successful financial retirement planning is to map out how much money you are going to need in order to maintain your current lifestyle upon retirement and go from there.

Most estimates are that you will need to bring home on average 75% of your current take home salary in order to maintain your current lifestyle. The understanding is that you will eliminate many monthly expenses by no longer working however some find that this simply isn’t enough so you should be careful when relying on this figure.

You should also plan for inflation when planning your retirement as well. It will take more money in the future in order to have the same standard of living. You should also consider that our expectations tend to increase over time and you need to be able to live within the limits of your budget when the time comes.

It will be difficult to take out additional funds once you’ve reached retirement age. For this reason it is in your best interest to plan ahead and plan carefully. The more modestly you live today in an effort to invest more money for your retirement the better chances you will have to enjoy a better lifestyle upon retirement.

You should also be careful that you do not sacrifice the moment in search of a better retirement. You need to be able to take vacations, save money for the things you want and need, in addition to covering the necessities of today. We aren’t guaranteed that we will be here for retirement though that is hardly a reason not to invest and save for that day.

However, we should never sacrifice the moment and the childhood of our children for the sake of an eventual retirement. As long as you are making significant progress you are doing better than a large section of the population and you can opportunities later to invest greater amounts of money towards you retirement.

The problem is that most people do not begin growing concerned over their retirement picture until it is too late to make significant progress. Begin early making plans for your financial retirement in order to insure the greatest possible success.

Pay off your major debts such as student loans, home loans, doctors’ bills, car notes, and credit cards whenever possible. These are constant drains on your income that you do not need once you’ve limited or ‘fixed’ your income.

In addition to your 401 (k) or IRA funds you can start your own investment account by having the bank automatically draft a portion of your check each pay period.

You can also ‘pay yourself’ an extra bonus by depositing extra funds anytime you get extra money like a bonus check at work or payment for services outside of work. Take every opportunity you have to boost your retirement account.



GEORGINA

Steve Dahl asked:


It’s never too early and never too late. Here are a few retirement myths to start busting right now! Retirement planning myth articles might not be at the top of your weekend reading list but this one will take you less than three minutes to read and it could save you a lot of financial pain later.

Six Retirement Planning Myths

Myth #1. When I retire I won’t need as much to live on.

Hogwash! How do you know what the cost of living is going to be? Sure the kids are off on their own and the house might be paid off but medical bills and cost of living are unpredictable. You should be able to live on less but why would you want to?

Myth #2. I’m a young pup and retirement is far, far away!

Get real dude, time flies when you’re having fun and burning mun. Of course it’s much easier to save a measly $29 a week at 34 than it is to save a whopping $240 at 54! That’s about what it’s going to take to have $200k in the old nest egg at 65. So there you have it. You can do it the hard we or the easy way. You decide oh youthful one!

Myth #3. My adorable children will take care of me.

Whoa! Haven’t you been watching TV? Your kids are more likely to move back in with you than they are to take care of you! Think back a bit… didn’t you preach to your kids about personal responsibility and good old independence? Keep your kids in your life but keep them out of your retirement planning.

Myth #4. I’m counting on social security to save my bacon!

Yeah, that will be the day when pigs fly. Uncle Sam hasn’t figured out if there will even be any social security in another decade or two. If you want to hold onto a weak retirement strategy then just count on Uncle Sam to be there with that retirement check when you need it. You are better off counting on your own discipline and resourcefulness. You can start drawing social security at 62 but depending on your age, you might be better off to consider that as a bonus than a sure thing.

Myth #5. I don’t have enough money to save or invest for retirement.

That might be true but then… maybe not. Take a hard look at where your money is going. Have you maximized your contributions to your 401(k) or other employer-sponsored retirement plans? Have you considered leveraging your home equity or other under-performing assets into safe and secure investments? Have you scrutinized your spending habits? Do you really need that satellite dish and 500 channels of mind numbing video? Do you really need the newest and shiniest shoes and chicest Chevy’s? Even if you can only save a small amount each week, start now. Be consistent and automatic with savings and investing. You might never feel like it’s enough but that is no reason to not to start.

Myth #6. I can’t afford a financial planner.

Many financial planners are compensated by the companies they represent and therefore charge nothing to you unless you do business with them. Others charge for their time on an hourly or fee-based schedule. Find someone you trust and get references. Take your time, go slow and do a little homework. Retirement planning is all about the future but it needs to start today.



KATELYN

Paul Hata asked:


While there was once a standard age for retirement in this country and people could count on their company pension plans or retirement funds to get them through their twilight years we are finding that people are often living longer than their funds intended and that their quality of life in these years is much better than in decades past.

In fact, we are seeing a growing number of retirees that are dedicated to health and good, clean, fun living. This is something almost unprecedented throughout history and yet our retirees are younger in many ways than ever before.

This is where the problem kicks in for most. If you haven’t heard, social security, which was meant to secure our golden years is in serious financial trouble. Part of the reason for this is because people are living longer than was intended when this program was invented.

For this reason, we are seeing more and more young people taking their financial retirement planning into their own hands-particularly as we are witnessing more and more retirees coming out of retirement in order to put food on their tables because their retirement funds aren’t enough to make ends meet.

It’s really sad to see those that must return to work in those years where they should be watching their grandchildren playing rather than going into work day after day. If you don’t want this to be you then action needs to be taken.

You cannot depend on social security for your retirement and chances are that social services will be a long forgotten thing of the past by the time we reach retirement age. There are several things you can do that will help you when it comes to setting aside and investing money for your retirement.

The earlier in life you begin socking away money for your retirement the better. This of course does not mean that there is no hope if you wait until later in life only that you will need to make more substantial investments and save more aggressively if you choose to wait until a later date.

One thing you should carefully consider when planning for your retirement and setting aside funds for that end is how much money you feel you will need in order to have the quality of life you hope to have upon retirement.

Many people are working longer than in the past in order prolong their investment period. It helps if you set specific goals so that you have a number to work towards. You should discuss your plans and goals with a financial advisor from the very beginning in order to get the most accurate advice that is customized for your individual needs.

Just as there are very few things in life that are one size fits all, the same holds true when it comes to planning for your financial retirement. We all have goals for our golden years.

Some of these goals include jet setting around the world while others of us seek little more than a modest existence, a garden to call our own, and a steady supply of good books to on our nightstands. There are all kinds of retirement plans and they will each require their own unique and individual means of funding.

One important thing you need to keep in mind is that while saving is great, investing is often the wiser option for increasing your funds and netting larger earnings upon which to retire.

There is risk involved in investing and you need to be aware of those risks before choosing to do so, however, there are many times where the rewards far outweigh the risks that are associated with investing.

You should always discuss your retirement plans and goals with a qualified financial planner. He or she can offer advice and guidance that could make a huge impact on the scope of your retirement and your lifestyle upon retiring. Choose your planner with as much care as you choose the plan for your financial retirement and you should be in good hands.



BRADLY

John McRae asked:


As the economy grinds to a hault and the stock market continues to drop the average investor is concerned about their retirement savings. Many are looking for options to find additional sources of supplemental retirement income.

First understand that the best retirement savings plan should involve multiple streams of income. Most people realize that social security will probably not be around when they retire. At best we should only expect a small monthly token payment. Additionally, retirees can receive a larger amount if they delay the age that they start to receive benefits. Buy having additional sources of supplemental retirement income and waiting a few years to begin receiving payments from social security can mean a few extra hundred dollars a month.

Even with the current extreme market conditions the employer sponsored retirement savings plan (401k) is still the best option. Most people now understand the importance of contributing to their 401k but unfortunately are having a hard enough time paying the bills with what they bring home. The thought of putting additional income into a retirement savings account seems impossible.

Let’s assume the average workers income is $40,000. The maximum amount that is allowed to be contributed to a retirement savings plan is $15,500. This would leave the average worker $24,500 to support his family make mortgage payments etc. Obviously this is not feasible and if this person does contribute anything in all likelihood it is a very small amount. Or worse yet they think they will wait a few years and then start their retirement savings.

If this same person started looking for a source of supplemental retirement income now he would be much better off in the future. In the past this would mean getting a second working strange hours and never having a day off.

Now days there are many options available to someone looking to increase there retirement savings and working from home is becoming the popular choice. In fact there are so many options that finding the right one is the hardest part.

There are people who make money just taking surveys on their computer. This method works best if you go into realizing what it is. A chance to make a few hundred dollars a month and you won’t get rich doing it (no matter what the advertisement says). However, making $200 to $500 dollars extra a month will allow you to contribute that much more towards your retirement savings account at work. Once you do retire you can continue to do this earning income in retirement and delaying drawing social security.

Another option is affiliate marketing. This method works best for those who are in it for the long haul. Some really good money can be made but it usually takes awhile for the fruits of your labor to be seen. This allows you to increase your retirement income in two ways. You can slowly increase your retirement savings deductions at work until you reach the maximum amount allowed and if you choose the correct affiliate program you will continue to earn money in retirement.

As you can see there are several options available to increase your retirement savings. The key is start planning now.



TRACIE

Steve Dahl asked:


many ways to catch up on your retirement but we’ve condensed it down to nine really good action steps you can take right now to get back on track. That bank CD isn’t a strategy but it could be a part of your plan. Learn more.

1. GET A PLAN, STAN! - An estate plan. A financial plan. Yup, it’s a cold fact. Any plan is better than no plan. A high paying bank CD might be a reasonable part of your retirement plan, if in fact, you have a plan. Without a plan you abdicate your planning opportunity to your favorite uncle… Uncle Sam. Take action this week. Read a good financial book to establish a basic retirement plan on your own or hire a financial planner or retirement specialist to get you on track. When you put together your own financial plan and/or estate you control what happens to your assets and your loved ones. Start with a will, get a living trust, consider setting up a trust if you have assets, or make a phone call to interview a retirement specialist or financial planner. The key word here is START!

2. KICK SOME ASSETS - If you had employees that just sat around all day you would kick some **** and put them back to work, right? Same reasoning here. Don’t call your bank CD your retirement plan. Bank CDs may be a fairly safe place for money in the short run but it is normally taxed every year as ordinary income and you don’t earn much. Take a close look at all of your assets and consider how they can be leveraged and protected for your long-term financial well being. Your home, your mutual funds, your bank CDs are all assets that you can help make retirement more enjoyable but by themselves, unattached to a solid plan, are not going to give you the peace of mind you hope comes with retirement.

Do not ignore the assets in your employer’s 401 (k) or similar investment/retirement program. Employers might be doing a great job of managing your retirement account or they might be blowing it big time. Do the homework, get second opinions, but don’t just take a wild guess and check one of your three options and forget about it.

Your employer most likely is pleased to share the details behind the investments they are making in your name. Maximize any matching opportunity they offer. Never forget that it’s your money in that account.

3. GET THE FACTS ON THE TAX - Use tax-efficient instruments! Don’t pay taxes when you don’t have to. Uncle Sam gives you plenty of options to reduce your taxes. Remember, reduce your taxes, increase your income! Although it may seem overwhelming finding tax deferred or tax-free investment opportunities, financial products with tax benefits make a huge difference in the long-term viability of your retirement portfolio. Being a great saver doesn’t cut it. Your basic savings account is going backwards compared to what you need for your retirement years. Would you rather take home 76 cents of every buck you sweat and toil to earn or would you rather take home 90 cents of every buck? Taking a second job is likely not as good of an idea as just reducing your taxes. Bank CDs are good examples of how Americans take the easy way out. There is nothing wrong with a bank CD but in most cases, they just don’t give you many tax benefits.

4. THE LONG-TERM CARE SCARE - If at all possible, protect your assets by purchasing a long-term care insurance policy. If the cost scares you then just compare it to the cost of robbing your savings or investments to pay for long-term care. There are two primary benefits to most long-term care policies. First, the care itself and, equally important is the fact that long-term care insurance may allow you to leave your investments alone so that they can keep working for you.

5. BECOME A DAY TRADER - NOT! - Late-night infomercials on television are pushing weekend seminars, books, and CDs that brag up how easy it is to make money by learning to be day traders, playing with futures, or gambling in currency markets. This is a great way to make a ton of money without lifting a finger… provided you’re the one running that obnoxious infomercial. If you have a serious interest in professional investing and the time to learn, then go for it. It’s not likely you’ll be an overnight success in the world of investing. Nobody is, overnight that is. Save your money. Don’t call that 800 number but discipline your life to fund consistent, methodical investment programs in financial instruments that you understand.

6. BECOME A CONVERT - Convert under-producing assets into higher producing assets. Equity in your home, low paying bank CDs, bare land that isn’t rented, are all under-producing assets that could be leveraged into higher-return investments. Don’t assume that having a long list of assets means you have a long-term financial plan. Even rental properties may be under-producing assets. Converting under-producing assets takes a more sophisticated assessment but it is definitely worth investigating. If you already have the asset, make sure it’s working as hard as it can. See a retirement planning specialist.

7. DON’T BE REVERSE AVERSE! - Consider a reverse mortgage but do so carefully. This doesn’t work for everyone but it can be a helpful tool in creating income during retirement. A reverse mortgage can provide income for life but it’s all based on your age and the equity in the home. There can be very high costs associated with the way some lenders do reverse mortgages so do your homework before you sign up for this one. It’s very difficult to reverse a reverse mortgage commitment so make sure you are working with a reputable broker and committed to staying in that home.

8. LEVERAGE THE LIFE YOU HAVE - Taxes are a part of life so why not make life a part of taxes? We’re talking life insurance here folks. Having a policy that is going to protect your loved ones once you die is important but there are other ways you can use life insurance as a tool to protect your assets and income. It’s perfectly fine to talk with your life insurance agent about her ideas on this but get a second opinion and professional guidance from your accountant or retirement planning expert. If you’ve put off getting life insurance, premium financing (borrowing money to finance the cost of your insurance premiums) can open some very interesting financial opportunities. This will require direction from financial experts.

9. START POUNDING COMPOUNDING INTO YOUR HEAD - Every minute works to your advantage with compounding interest. Interest you earn this year is added to your principle and then you begin earning more interest on that interest. Well, you get the picture.

Even the most basic investment plan can be better than none if it allows for the proven benefit of compounding interest. The magical ingredient of compounding interest is time. Whooaaa! There goes another two minutes and another two bucks? Never forget this! The absolute next best thing to starting saving and investing when you are young is starting now!



ELDRIDGE

Wayne Miller asked:


But short of the worst case scenario of an early demise, everyone is going to get old and its far better to do so with a plan then to let it sneak up on you.

This is something you do not want to ***** up. Is it possible to ***** up retirement planning? Of course it is. If you speak to senior citizens who did not start planning in advance and got to their senior years with nothing to fall back on and no funds to use so they can step out of the working world and enjoy a more leisurely retirement lifestyle, that is an example of people who screwed up their retirement planning. So it is good to know the common mistakes people make so you can avoid them.

Probably the biggest mistake that you can make in your retirement planning is to wait to start it until you are pretty close to retirement. If you want to retire at 60 and you do not start getting ready until you are 55, you will not have nearly as well prepared a retirement package as if you had started when you was 25 or 35. By starting early, you can set back a small amount each month and put it into an IRA, your employer 401k or some other retirement vehicle. Then just let that money continue to accumulate and grow and before you know it you are sitting on top of a pretty substantial nest egg.

Speaking of sitting on top of a nest egg, the second big mistake people make is not leaving that nest egg alone. When that retirement investment fund starts to get big, it is really easy to look at it as a way to get you out of credit card debt trouble or to borrow against for some new plan or possession you want. Above all, resist this temptation. If you lose that retirement fund due to foolish use of the funds in your middle age years, you are back to square one with nothing to show for your years of hard work developing that retirement nest egg.

The plan of setting up withholding from your checkbook or a direct deposit to your retirement account of retirement savings allows you to go about your busy life knowing that your retirement planning is underway. This is step one but its not a good idea to never go back and review your retirement plan and see if how you are going about getting ready for retirement well in advance. Make it a regular ritual to sit down and review what is going on with your investment funds. Look at the way your investments have been performing and if you are not getting a good return on those money, make some changes. Remember, just because your retirement funds are being managed by the company you work for does not mean the money belongs to them. It is yours so be responsible and manage it.

Starting early and staying proactive about your retirement is your best approach to retirement planning and one that will result in a much bigger retirement fund for you to start your golden years with. And by taking good care of your retirement before you need it, you are guaranteeing that it will take good care of you when its time to depend on that fund for a happy and prosperous retirement lifestyle.



DEON

Wayne Miller asked:


This is not a given for every employee. It used to be in the generation that was in the workplace of the nineteen fifties and sixties that staying with a company for thirty or more years and retiring with full benefits was the norm. That is not the norm any more.

We cannot just blame the job hopping ways of employees for the change of culture away from going for the gold watch and retiring in a company. From the corporate side, so many companies have eliminated retirement packages entirely that there is a strong belief of the do it yourself retirement in the working population.

A company offers retirement benefits for employees for one purpose. That is to aid with retention. When you have a pool of talented, well trained and energetic employees, that is a corporate resource. So if you can keep those employees all the way through to retirement, that is a real value to any corporate entity.

So if your company does offer these benefits to your employees, its important that you take advantage of them in more ways then just sponsoring them. A retirement package for aging employees sends a message to the employees that the company cares about them and about their families. And this may be true in your company that you have a corporate culture of being involved with your employees at a personal level and maintaining that we are family feeling for people who work for you. If that is the case, it makes sense that you would extend that feeling to care for the retirement planning of any employee that you have that shows signs of being a long term value to the company.

You should highlight the company retirement package as early as the interview with your prospective employees. Remember that an interview is about more than you looking for qualified people. It is also about qualify people interviewing you. And that is exactly where the value of a strong retirement package is of greatest value. If a job hunter who is looking for a place to work that they can retire at knows that you have a good plan to help them with their retirement planning, that will draw the brightest and best to your HR department.

Your HR department should not let the retirement issues of employees lie idle for very long at all. The more you help your employees plan for and participate in a retirement program, the happier they will be and the more engaged in their work they will be. Hold regular retirement planning meetings to have employees review their level of participation in the program. This is where you will put in front of the employees your most empathetic HR employees to show genuine interest in the employee retirement issues.

Above all be sure to show particular concern and caring for aging employees. And when an employee finally crosses over into retirement, throw a party and go out of your way not only for the company to help the employee transition to retirement but to demonstrate to all employees that the company lives up to its claims to be faithful to employees all the way into retirement. In an economy where so many companies throw people away, your employees will notice that this is not that kind of company. And your faithfulness to retiring employees will result in a rich crop of faithfulness from ongoing employees who stand behind you because you stand behind them from the day they start work in the company all the way through to retirement.



CODY