Job hunting? How to find an employer that will best support your retirement goals
Today’s economy is enjoying a high level of employment, and many companies are struggling to find the talent they need. This can be a good thing if you are job-hunting now because it may mean more options available to you. It can also mean that employers are offering bigger and better opportunities and benefits to attract employees. If you are looking for a job right now, make sure your future employer has the tools and resources to help you build a strong financial future through retirement benefits.
Why Retirement Benefits Matter
An employer-sponsored retirement account offers benefits to both you and your employer. It allows you to put some of your paychecks into a tax-advantaged account. These accounts offer value over time without being taxed, and they can help you build your retirement investments a bit more easily than if you were to try investing on your own.
Additionally, your employer may be willing to match the contributions you make, which means your employer can also add to your retirement account. This helps you increase your investments faster, and employers benefit by not only offering an attractive incentive that top talent is looking for, but also by taking advantage of tax breaks offered to them for these types of accounts.
Learn What Options Are Available to You
If you are considering options for building your retirement fund, here are a few things to consider about any benefit offered by an employer.
- Does the employer offer only retirement benefits, or numerous other benefits? If you have to pay for services like healthcare, you may end up spending significantly more. Ask for a benefits package.
- What type of retirement account does the employer offer? The most common option is a 401k, but there are others.
- Does the employer offer a matching retirement contribution and, if so, what are the limits? It is often best to maximize your contributions to ensure your employer is putting as much as possible into your retirement account.
- If the employer does not offer these accounts, will the company contribute to your IRA or other retirement account managed outside the company?
- When will you be vested? Employers contributing to your retirement account can limit access to these funds if you do not remain with the company in the long term.
The more information you have about employer-sponsored retirement plans and any benefits packages offered, the better. Most companies have done away with pensions, but they still offer lucrative savings options to help you build the retirement account you need.