Help SMB Employers Improve Retirement Readiness
Quick look: October is National Retirement Security Month, an ideal time for brokers to help clients empower their employees with tools and knowledge to prepare for a stable financial future. From growing retirement concerns to new legislation and generational priorities, staying ahead of these trends can provide you and your clients a competitive edge. Explore the latest insights and see how partnering with a professional employer organization (PEO) can enhance retirement readiness across the workforce.
Each October, National Retirement Security Month highlights the importance of financial literacy, savings options, and the steps workers can take to secure their futures.
Retirement is a hot topic for all staff. With more workers reaching retirement age and younger employees taking a proactive interest in saving, now is a prime opportunity time for brokers to help clients strengthen their benefits offerings and retirement planning strategies.
The current state of retirement preparation
According to the Federal Reserve, 61% of Americans have a tax-preferred retirement account, like a 401(k) or Roth IRA, but only 35% feel their savings are on track.
Other research echoes this trend. For instance, the National Institute on Retirement Security found that:
- 55% worry they won’t achieve financial security in retirement
- 73% say inflation has increased their retirement concerns
- Many are nervous about rising costs during retirement, including long-term nursing care (80%), housing (75%), and healthcare (66%)
The Federal Reserve’s Survey of Consumer Finances found that average account balances vary by age:
- Under 35: $49,000
- 34-44: $142,000
- 45-54: $313,000
- 55-64: $538,000
- 65-74: $609,000
- 75 and over: $462,000
The “Silver Tsunami” is here
Meanwhile, a number of Americans are reaching retirement age, a phenomenon known as the “Silver Tsunami” or “Peak 65.”
Over 11,000 Americans will turn 65 every day in 2025, with over 4 million reaching traditional retirement age, the largest group in U.S. history.
While some retirees will return to work, it’s important for business leaders to help their employees plan for the next chapter of their lives.
How younger generations are preparing
Younger employees take saving for their future seriously. More specifically, here’s where Millennials and Gen Z stand:
| Has a personalized retirement plan | Feel on-track or ahead of schedule with saving | Top desired plan features | |
| Millennials | 67% | 69% | • Emergency savings (44%) • Professional financial planning and advice (35%) • Retirement strategy education and insights (31%) |
| Gen Z | 60% | 68% | • Emergency savings (37%) • Professional financial planning and advice (36%) • Retirement strategy education and insights (28%) |
This focus on long-term planning presents a valuable opportunity for clients to engage younger employees early in their financial journeys.
How the SECURE 2.0 Act is shaping retirement savings
The SECURE Act was first passed in 2019 and makes it easier for small- and medium-sized employers to provide their employees with affordable, easy-to-manage safe harbor retirement plans.
Its follow-up, SECURE Act 2.0, was signed into law in 2022 and includes several changes affecting retirement preparations:
- Employers may match retirement contributions based on employees’ student loan payments. This could help recruit and retain younger staff, as Vestwell found that 93% of employees with student loans say that debt affects their ability to save for retirement.
- 401(k) participants can withdraw $1,000 per year for emergencies, tax-free.
- Catch-up contribution limits have increased for older workers.
- Part-time workers may qualify for employer retirement plans earlier.
- Starting in 2025, businesses offering 401(k) and 403(b) plans must automatically enroll eligible employees with at least a 3% contribution.
Click here to view the entire SECURE 2.0 Act >>
A broker’s role in building a secure future
As seasoned employees cycle out of the workforce and younger ones take a more active role in financial planning, brokers are positioned to guide clients in designing retirement strategies that meet their multigenerational workforce’s needs.
Employee benefits
A 401(k) plan with an employer match is one of the strongest tools for retirement readiness. In fact, Americans are 25 times more likely to save for retirement if they have access to a workplace plan. For employers, these programs can also lead to recruiting and retention advantages, lower tax liability, increased tax credits, and elevated productivity and engagement.
Beyond the 401(k), brokers can help clients further support financial wellness through complementary benefits such as student loan repayment programs, flexible savings accounts (FSAs), and health savings accounts (HSAs).
Education
Financial education is another essential piece of the puzzle. Brokers can encourage clients to host workshops, webinars, or lunch-and-learns that help employees better understand their plan options and discuss topics like budgeting, reducing debt, and investing. These resources inform employees about the importance of retirement planning and their plan’s structure.
Partnership with a PEO
Brokers can also strengthen their client relationships by connecting small and midsize businesses (SMBs) with a professional employer organization (PEO).
PEOs give smaller companies access to Fortune 500-level benefits and competitive group pricing that may otherwise be out of each. PEOs also bring deep expertise in areas like benefits experts to help design plans that align with what employees want, manage benefits communications, monitor compliance, assist with enrollment, and answer worksite employee questions.
Empower staff, expand your book
Employees look to their employers for resources on saving for retirement, and brokers are positioned to help. By aligning clients with the right PEO and educating employees about their available options, brokers can play a major role in advancing financial confidence and loyalty.
As retirements rise and younger generations plan ahead, retirement solutions are more important than ever. Reach out to your SMB clients to explore how you can help them design programs that attract and retain top talent, today and for years to come.
Help your clients strengthen their retirement readiness. Explore our benefits offerings or contact us to learn how we can work together.
