On Monday, many employees enjoyed a day off to celebrate their hard work on Labor Day. Today, employers can help their teams celebrate their future plans to take it easy in retirement — it’s National 401k day!
This “holiday” might not have cute puppies like Dog Day or be as cheesy as Pizza Day, but it’s a good reminder to encourage your employees to plan for their future and make sure they’re on track.
Why celebrate the 401k?
So, why celebrate the 401k? Many employees consider their retirement savings as incredibly important for their financial wellbeing.
More than 78 percent say a 401k will be their largest or only source of retirement income. Additionally, 86 percent of employees consider a 401k a “must-have” benefit and expect support from their employer.¹
However, only about half (52 percent) of individuals participating in retirement savings plans believe they are “on track.”²
How to recognize 401k day in the workplace
Your employee’s increasingly busy lives make it challenging to take time out and plan for the future, but 401k Day might just be the reminder we all need.
While asking employees who might be struggling with daily bills, credit card debt and student loans to contribute a big chunk of their income to their 401k won’t be well received, there are smaller steps to take.
Financial wellbeing programs can supercharge your 401k strategy
Confidence starts with education, and financial wellbeing programs (like LearnLux) that offer education & interactive tools as an employee benefit are a great way to start the conversation with your team.
When considering a financial wellness provider, look for programs that cover topics like:
- Retirement readiness strategies
- 401k Basics
- How to roll over an old 401k to your new employer
- IRA vs 401k - What's the difference?
- 401k Contribution Limits and Tax Advantages
- Should I pay off debt or save for retirement?
- 401k Investment Options and Vesting
- Leaving your Job, Access to 401k Funds, and Loans
So, however you plan to celebrate National 401k Day with your employees, help them keep their sights set on the future. This will help them build the confidence they need to feel great about their personal finances. It will help them retire on time, have peace of mind, and understand their benefits better, too.