Why Plan Sponsors Should Be Thankful for Retirement Plans This Season
As the year draws to a close, gratitude often takes center stage as we reflect on family, health, and the little joys that make life better. But for plan sponsors, there’s another reason to be thankful: the ability to offer a retirement plan to employees. This isn’t just a compliance requirement; it’s a benefit that can help strengthen your workforce and your business.
Retirement Plans as a Talent Magnet
In today’s competitive job market, benefits can be more than perks. A recent Forbes Finance Council survey revealed that 62 percent of employees weigh the availability of a retirement plan heavily when considering a job offer or deciding whether to stay, and 76 percent are drawn to companies that demonstrate care for financial well-being. Your retirement plan is not just a checkbox; it can be a strategic advantage that helps to set your organization apart in recruiting and retention.
Building Loyalty and Engagement Through Security
Beyond attracting talent, retirement benefits can help foster loyalty and engagement. Research shows that employees who feel confident about their financial future tend to be more focused, productive, and committed. Companies offering strong retirement benefits may experience lower turnover and higher loyalty, which translates into significant savings on recruitment costs and the preservation of institutional knowledge. The Society for Human Resource Management’s 2025 Employee Benefits Survey underscores this point, ranking retirement savings and planning benefits among the most “extremely important” offerings for workers.
Financial Wellness Promotes Business Wellness
Offering a retirement plan can demonstrate to your employees that you care about their future, helping to contribute to a positive company culture and enhancing the employer brand. A retirement plan can be a key element in both supporting employees and strengthening organizational culture.
Tax Advantages That Benefit Everyone
Tax benefits can add another layer of gratitude. Employer contributions and plan expenses are generally deductible, and small businesses may qualify for tax credits covering up to 100 percent of qualified start-up costs under SECURE 2.0. These incentives help create a win-win scenario where employees can gain a pathway toward long-term security and employers can enjoy meaningful financial benefits.
Maximizing the Impact of Your Retirement Plan
As you reflect on this year and plan for the next, consider how your retirement plan can help deliver even greater impact. Auto-enrollment simplifies participation and helps employees start saving effortlessly. Roth options, now more accessible through SECURE 2.0, can provide flexibility for catch-up contributions. Financial education, whether through webinars or interactive tools, is designed to help employees to make informed decisions. Matching contributions, even modest ones, can boost engagement and loyalty. Technology can also play a role with mobile apps and personalized dashboards keeping employees connected to their goals. Regularly review plan fees and investment options to help ensure competitiveness and fiduciary compliance.
A Reason to Be Thankful All Year Long
Gratitude often begins with recognizing what we have and the difference it can make. For plan sponsors, the ability to offer a retirement plan can demonstrate an investment in people and performance that can help shape brighter financial futures for your employees.
This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.
Patricia L. Hutchinson
Director of Retirement Plan Services
AIF®, MBA