Today, we’re going to focus on what I call “the Gap Statement.”
Recently, we’ve been talking a lot about employee engagement. If you aren’t taking advantage of the Retirement Gap Analysis Report, however, you aren’t helping your employees to the fullest extent.
This report specifically tells your employees what they need to save for retirement based on their needs-based rate of return, which is the least amount of risk they need to take to achieve a near-guaranteed paycheck for the rest of their life.
In other words: What is the return your employees need to earn with the least amount of risk?
Now, the Gap Statement will show your employees how much of a monthly income they’re going to have when they reach their retirement years. It’ll consider a number of things, and will then show them the gap between their current monthly income and what they need to live on.
It will also show how much more monthly income employees can have if they gradually increase their savings rate. This monthly income has a lot to do with something called the income replacement ratio which I will discuss further in a future video.
This report will not only tell employees how much they’ll be saving toward retirement, but also how much they’ll save in terms of taxes.
Ultimately, the net cost for them to increase their contributions may not be as much as they think.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.