Deferred Compensation

We help you reward yourself – and your key employees.

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, layouts 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 Income Gap Chart

Source: Principal Financial Group Retirement Ratio Calculator with information from the Annual Statistical Supplements to the Social Security Bulletin. Used by permission. For more information about your personal situation, visit with your financial professional. (c) Principal Financial Services, Inc.

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.