America Saves Week 2019 - Top 6 Tips BDO, America Saves Week

America Saves Week 2019

Top 6 Tips for greater savings

BDO’s ERISA Center of Excellence is proud to support America Saves Week 2019 and the plan sponsors who work tirelessly to help their employees secure their financial futures.

As we celebrate this week, here are to keep in mind for greater savings.

6 tips

Save with a plan

Save for the unexpected

Save the extra

Save the easy way… automatically

Save to retire

Save as a family

Tip 1:

Save with a plan

Savers with a plan are twice as likely to successfully save for retirement and education.

Companies are starting to offer financial wellbeing programs to help employees assess their current financial situation and make a plan to save comfortably.

Technology can play a significant role in the adoption of wellbeing best practices by employees. Mobile applications, sophisticated algorithms, and online programs that empower the user to make smart financial decisions are turning these people from sideline watchers into active players.

Tip 2:

Save the easy way… automatically

The use of automatic enrollment and automatic escalation programs are quickly growing in popularity with plan sponsors.

Starting employee contributions at a more aggressive 6-10% vs. the typical 3% can get them saving more right away.

Consider making auto-escalation increases opt-out instead of opt-in to capture more participation.

Automatic enrollment is especially effective at capturing participation from 20-somethings who may not be as likely to sign up on their own.

Tip 3:

Save for the unexpected

Natural disasters – like hurricanes and wildfires – can produce unexpected expenses employees may not be financially prepared to cover.

New regulations are broadening the options for loans and hardship withdrawals for employees who find themselves in financial distress.

Tip 4:

Save to retire

Saving for retirement can be a daunting task, but the Department of Labor has resources to take the mystery out of planning. Check out their website for toolkits on retirement as well as a calculator to ensure you’re saving enough!

Tip 5:

Save the extra

When a financial windfall comes your way – think tax refund or bonus – consider allocating part or all of that to your savings.

According to the IRS, the average federal tax refund for 2017 was nearly $3,000. Larger contributions to savings accounts a couple times a year add up fast.

Tip 6:

Save as a family

Plan sponsors should encourage employees to realize that a family’s long-term financial planning shouldn’t be the responsibility of just one family member. And that men and women have different behaviors when it comes to finances.

And open dialogue with children about financial goals and how to get there – avoiding whim purchases, setting aside money in savings each paycheck, establishing a monthly budget, and more – can pass along good habits for future generations.

All of the adults in the family should be involved in the big picture discussions about saving for retirement, budgeting and insurance.

For more on how plan sponsors can support the goals of their employees, visit BDO’s ERISA Center of Excellence or connect with us on social media.

www.bdo.com/erisa

#BDOERISA

Happy America Saves Week 2019!

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