Link’s cutting-edge LINK Multi Employer Pension Plan and other options can create a ‘culture of caring’
Can retirement savings wait? Well . . . the wrong decision could cost your employee six digits. Or even seven. Really.
In recent weeks, an Ipsos/Navient poll suggested that nearly four in 10 young adults believe saving for retirement can be placed on the back burner—and that less than a third of those young adults (31%) are actually saving for retirement.
In fact, the time is now. And if your small to midsize business employs millennials and Gen Z-ers—which it surely does—this objective is well within reach. Without the financial heartache.
Per a recent article from investment analysis outlet The Motley Fool, the age at which an employee starts saving for retirement is the ultimate factor in their comfort level in those golden years. And that difference could potentially climb into the millions.
This is nothing new, of course. Nor is your company’s intention to do right by your employees. And in light of recent regulation changes in Alberta, Link Investment Management can offer a powerful new tool to get you started.
DC pensions for the people
In Alberta, smaller unaffiliated businesses (with two or more employees) can now offer the considerable benefits of a true pension plan to their employees—without the historical cost, administrative burden and regulatory demands.
Link Investment Management’s LINK Multi Employer Pension Plan was only recently made available to small and midsize businesses in the province. The benefits of this Defined Contribution (DC) pension plan are immediate for the employer—and they’re long-lasting for the employee.
For example:
- Contributions are fully tax deductible for the employer;
- Employees receive the entire employer contribution without any taxes or source deductions;
- Employee contributions are made with pre-tax dollars, via payroll deduction;
- Link’s proprietary cloud-based platform dials in on risk tolerance, financial situation and investment objectives to create a fully personalized investment portfolio.
Link Investment Management assumes all the heavy lifting involved with administration, registration and regulation of this program—taking the burden off your company’s shoulders.
Equally importantly, Link Investment Management charges about 1% to professionally manage each employee’s pension assets, which are invested via a tailor-made retirement portfolio consisting of low-cost exchange traded funds (ETFs).
Compare that to the up to 3% that can be charged by traditional providers, depending on plan size and investment choices.
A ‘culture of caring’
Link Investment Management can help your business to create the best combination of products—with no limitations on brand or provider, unlike our competitors—to create the optimal scenario for your company and your workforce.
This can include:
- The ALPP (described in detail above), a disciplined savings and retirement vehicle that can help you look after your people and become an employer of choice;
- A group RRSP program (GRRSP), which can help employees save on the cost of establishing a registered program; or
- The addition of a group TFSA program (GTFSA), as a secondary, short-term savings vehicle.
These tailored options—for employers and employees alike—can create a critically important “culture of caring,” which fosters higher productivity, lower turnover and less financial stress.
Do right by your workforce
Your employees are the lifeblood of your organization. You want to pay more than lip service. You want to do right by your people, and programs like the LINK Multi Employer Pension Plan are the perfect vehicle with which to do it.
Contact us today for a closer look at our financial wellness benefit plans—and to get your workforce on the road to a more comfortable retirement.
