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employee perks
Oct 24, 2022

The business advantage of a retirement plan

Two women picking out a retirement plan with Morgan Stanley

Land and Keep Top Talent 

In today’s competitive job  market, a retirement plan offers you the ability to compete for  – and keep – the best and the brightest. Considered essential by top talent, a retirement plan is both expected and ranked as an important factor when evaluating a job offer.² 

Increase Employee Wellness and Productivity  

Studies show that finances are the top cause of employee stress, impacting their ability to perform and be productive.⁹ Helping employees manage and maintain their finances has become a priority for many businesses.¹⁰ 

⁠There is a “direct correlation between an employee’s financial well-being and a company’s bottom line.” ¹² 

⁠There is a “clear relationship between employee’s financial worries and their work performance.” ¹⁴

Potentially Help Decrease Business Taxes 

Opening a retirement plan can help optimize tax efficiencies for your business and reduce taxes for both you and your employees through: 

  • Tax deductions to the business for employer contributions 

  • Reduced personal taxes for both employers and employees for tax-deferred contributions 

  • Tax credits on select plans 

  • Write-offs for certain administration costs 

  • The costs and resources required to manage a retirement plan can be offset with savings in employee turnover, increased productivity  and tax efficiencies. 

The costs and resources required to manage a retirement plan can be offset with savings in employee turnover, increased productivity and tax efficiencies. With viable solutions for businesses of every size, the time to enhance your organization with retirement benefits has never been better.

401(K) Retirement Plan Exchange
There are dozens of responsibilities plan sponsors must take on when offering a 401(K) to their employees. With Excelerate America’s Retirement Plan Exchange, virtually all of the administrative burden is removed. 

The plan is built on a pooled pricing model and often costs less than other programs offering fewer comprehensive solutions. The plan cost is negotiated on a larger, cumulative asset pool so feels drop as the plan grows.

To learn more about Excelerate America’s fiduciary-plus 401(k) Retirement Plan Exchange, please contact Heidi Wilcox at heidi.wilcox@excelerateamerica.com

¹ https://www.salesforce.com/content/dam/web/en_us/www/documents/reports/smb/fourth-edition-small-medium-business-trends-report.pdf 

₂ https://www.betterment.com/uploads/2020/05/2019-07-26-B4B-Customer-Survey-Report.pdf 

³ https://www.accenture.com/us-en/services/public-service/pensions 

⁴ https://www.gallup.com/workplace/247391/fixable-problem-costs-businesses-trillion.aspx 

⁵ https://www2.deloitte.com/content/dam/Deloitte/us/Documents/human-capital/us-2019-defined-contribution-benchmarking.pdf 

₆ ⁠https://www.gallup.com/workplace/247391/fixable-problem-costs-businesses-trillion.aspx 

⁷ https://www.aboutschwab.com/schwab-401k-participant-survey-2021 

⁸ https://home.kpmg/xx/en/home/insights/2020/10/retain-key-talent-through-data-insight.html 

⁹ https://www.pwc.com/us/en/services/consulting/workforce-of-the-future/library/employee-financial-wellness-survey.html 

₁₀ https://www.willistowerswatson.com/en-CA/Insights/2020/02/global-benefits-attitudes-survey-report 

¹¹ https://s3.amazonaws.com/cfsi-innovation-files-2018/wp-content/uploads/2019/05/24163214/FHN-MorganStanley-Infographic-FINAL.pdf 

₁₂ https://cdn2.hubspot.net/hubfs/172936/pwc-financial-stress-and-bottom-line.pdf 

¹³ https://www2.deloitte.com/content/dam/Deloitte/us/Documents/human-capital/us-2019-defined-contribution-benchmarking.pdf 

₁₄ https://www.willistowerswatson.com/en-US/Insights/2018/12/employee-financial-wellbeing-the-impact-of-employee-financial-health-at-work 

When Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors (collectively, “Morgan Stanley”) provide “investment advice” regarding a retirement or welfare benefit plan account, an individual retirement account or a Coverdell education savings account (“Retirement Account”), Morgan Stanley is a “fiduciary” as those terms are defined under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and/or the Internal Revenue Code of 1986 (the “Code”), as applicable. When Morgan Stanley provides investment education, takes orders on an unsolicited basis or otherwise does not provide “investment advice”, Morgan Stanley will not be considered a “fiduciary” under ERISA and/or the Code. For more information regarding Morgan Stanley’s role with respect to a Retirement Account, please visit www.morganstanley.com/disclosures/dol. Tax laws are complex and subject to change. Morgan Stanley does not provide tax or legal advice. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a Retirement Account, and (b) regarding any potential tax, ERISA and related consequences of any investments or other transactions made with respect to a Retirement Account.

© 2022 Morgan Stanley Smith Barney LLC. Member SIPC.

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Roy Lamphier

Small biz owner, mentor, and economics geek.