Employer matching contributions to retirement plans are often seen as costly commitments by business owners. As it stands, 48% of private sector workers in the United States don’t have access to a 401(k) or pension plan, according to an AARP study. Yet, for employers, they are worth investing in.
Companies are beginning to understand the positive effects that matching can have on employee loyalty. Offering a 401(k) matching program provides both employers and employees with countless benefits. For example, a 401(k) match might seem expensive, but it’s one of the most cost-effective benefits you can offer your employees. A match is tax-deductible for you, reducing your after-tax burden.
