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Recent studies indicate that the provision of a retirement savings plan may be an important consideration in an employee’s decision to join a company: “Sixty-three per cent of respondents say that it is unlikely that they would work for an employer who did not sponsor a retirement plan.”

These plans are held in such high regard, in fact, that: “Seventy-three per cent say they would rather have an employer-sponsored retirement savings plan than a raise in pay.”

Employees know they will probably be entitled to a minimum level of government benefits. They may develop a personal savings plan to supplement those benefits but often they either begin one too late in life or find it difficult to set up such a plan. Consequently, employer-sponsored retirement plans meet their retirement needs by providing another source of income and financial security.
 


 

 
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