There’s never been a better time to be a worker saving for retirement.
Companies, as part of an effort to retain and recruit workers during the Covid-19 era, are dramatically improving their employer-sponsored retirement plans, according to Pensions & Investments, a trade publication.
“The largest employers are adding benefits to try to retain employees and the retirement plan is one of the key benefits,” said Bonnie Treichel, the chief solutions officer at Endeavor Retirement.
KPMG, for instance, is changing its matching formula. The company started this year giving employees 6% to 8% of their total eligible earnings instead of the current match of 25% on the first 5% of base pay, according to the report. In essence, the firm will “no longer require employees to contribute their own money to receive the firm’s money,” Jenny Lisena of KPMG is quoted as saying.
In his practice, Mike Kane, a managing director with Plan Sponsor Consultants, said more and more of his plan sponsor clients want to discuss non-matching discretionary contributions, especially in cases where employers are terminating defined-benefit plans.
If you’re thinking about quitting your job during The Great Resignation, you should consider all the new and changed benefits potential employers are offering.