Jose is angry with himself
Jose has been a business owner for almost 20 years. I remember talking to him about retirement a year and a half ago. I asked him if he had made any arrangements for his employees. Back then he told me: “I don't do that. My people are old and wise enough to make those arrangements themselves. They are paid very well.”
"I prefer to pay them a bit extra every once in a while"
A month ago, I spoke to Jose about retirement again, and he had completely changed his opinion. Something bad had happened. Last summer, one of his employees suddenly died from cardiac arrest. It was a big shock for everyone at the store, but obviously the shock was even greater for his family. And as it turned out, the employee hadn’t made any financial arrangements at all. He had no pension, and his family didn’t get anything after his death. This had very unpleasant consequences for the wife and two children he left behind. They had to move out of their home.
Jose knows the family well. They had often eaten dinner together. This made it even more painful for Jose to see what’s happening to the family. “I feel like pulling the hairs right out of my head. I was his employer. If only I had set up a pension plan for him.” The fact is that a pension plan almost always includes financial coverage in case of death. With a pension plan from ENNIA, this is always included.
Just like Jose, many business owners think that their employees are old and wise enough to put money aside for the future. Unfortunately, that’s frequently not the case. Many people find saving money difficult. Once they get their salary, they prefer having the money in their pocket, and not in their bank account.
However, they are going to need money for the future as well. Employers can easily help their employees make the right arrangements. This not only benefits the employees, but the employer as well. Now that it’s becoming increasingly difficult to find good staff, a good pension plan is an important extra benefit that can help attract people. Of course, I know that offering a nice lease car and a nice salary can help recruit new people as well but offering a pension plan is becoming increasingly important to employees, and business owners should take that into consideration.
How do you arrange a pension plan for your employees? And what does it cost? At ENNIA we help a lot of business owners figure out all the details. We would be happy to come visit you at your place of business to give you more information. As an employer, you want to do what’s best for you as well as for your employees!
Something else to consider: attractive tax rules apply to pension plans.
ENNIA Senior Pension & Employee Benefits Specialist