Aligning Plan Design with Your Goals
Most of us live in homes that weren’t custom-designed for us. We adapt to them, rather than expecting them to be perfectly tailored to our needs. Retirement plans are often sold similarly, as companies purchase generic, off-the-shelf plans. While marketed as cost-efficient, these plans often end up costing more due to lost tax or retirement savings opportunities because they aren’t optimized for the company’s unique goals.
At Pension Services Inc., we take a different approach. We work to align your retirement plan design with your specific goals. This involves listening to your needs, assessing your objectives, and then presenting tailored ideas to meet those goals effectively.
Understanding Custom Plan Design Options
Retirement plans can vary significantly based on your preferences and business structure:
- Contribution Flexibility: Contributions can be either discretionary or mandatory.
- Employee Preference: Plans can favor older employees or younger ones, depending on your retention goals.
- Accumulation Style: Options range from 401(k) accounts that build a balance over time to defined benefit plans that promise a specific benefit amount.
- Contribution Limits: Plans like DB and Cash Balance can allow contributions in the six-figure range, which could benefit high-income employees.
If your goal is simply to find the least expensive option, a one-size-fits-all plan might be sufficient. But if you’re seeking a strategic approach to maximize both your and your employees’ retirement benefits, we invite you to explore a custom plan design with us. The results of a tailored approach can be transformative.
Give us a call, and let’s collaborate to make sure your retirement plan is an ideal fit for your business and your goals.