Rewarding yourself and your key employees
We can help you create effective programs and strategies to reward yourself and your key employees – or to help facilitate your business succession plan. The goal is to improve recruiting and retention, while helping your business grow and succeed.
Bridging the retirement income gap
It’s difficult for business owners and other highly-compensated employees to adequately save for retirement using qualified plans and Social Security alone. Limits on contributions, payouts and tax advantages can result in significantly lower post-retirement income.
According to industry experts, most people need at least 80 percent of pre-retirement income to maintain their current standard of living in retirement. Yet qualified plans and Social Security, together, may provide only 30% of current income – creating a serious retirement income gap. The chart, below, shows the potential impact of Social Security and 401(k) plan benefits at various income levels.
Kidder Advisers can help you create a deferred compensation benefit program to help you and your key employees bridge the retirement income gap. It’s a program that can enable you to recruit, retain and reward the employees who help your business succeed.
Properly designed deferred compensation plans can help you:
- overcome restrictions resulting from 401(k) nondiscrimination testing;
- significantly increase retirement savings;
- manage taxation timing;
- establish performance-based incentives; and
- facilitate succession strategies.
Structuring and facilitating continuity
We work closely with you, your successors and your advisory team to design and fund effective succession plans involving family members, key employees or third parties.
Based on your needs, objectives and time frame, we identify and develop effective, tax-favored, buy-sell funding mechanisms that benefit you and your successors, while providing continuity and security for your employees. The funding mechanisms can include ESOP alternatives, lifetime giving programs, insurance solutions and more.
Through key-man insurance strategies, we can also help you protect your business and succession plan from the unexpected loss of essential employees.