Saving For Retirement: Participating in a 401(k) Plan

Kathy_EggimanBy Kathy Eggiman, Business Development Specialist, Bell State Bank & Trust

Saving for retirement is not what it once was. Pension plans are a dim memory to some, and Social Security is a concern for many. In 1910, the average retirement age was 74 years old. The average retirement age decreased to 62 in 2002, but has now increased to 65. This increase is primarily attributed to the higher age for receiving full Social Security benefits, increasing health care costs and recent shocks to the economy. Many people dream of early retirement, and the good news is, this can be obtained through careful planning.

One of the most valuable benefits employers can offer employees is the opportunity to participate in a 401(k) plan. This benefit is attractive to an employer offering immediate tax savings on contributions and is a tremendous tool for attracting talented and loyal employees.

Scheels, a sporting goods retail giant based in the Midwest, has been a customer of Bell State Bank & Trust for decades and in 2006 partnered with Bell to implement a 401(k) plan.

“We greatly appreciate Bell State Bank & Trust’s attention to detail and the level of customer service that they provide our company. In our opinion, Bell provides first class customer service that not a lot of companies provide today. They go above and beyond to make sure their customers are satisfied and happy with the products and services provided. They are a true partner for our business,” said Michelle Killoran, CFO of Scheels.

The retirement division at Bell State Bank & Trust has provided retirement benefits for over 25 years to over 20,000 participants in 48 states. Our experts offer employers a variety of options to assure their plan is designed properly to meet their goals and objectives and that their employees are deferring enough to meet their retirement goals. Bell provides competitive options including:

  • A dedicated, assigned team
  • Flexible plan design
  • Diversified investment options
  • Personal financial planning with a Bell State Bank & Trust professional
  • Engaging communications with participants
  • Online access
  • Simplified administration
  • Full compliance reporting

Industry standards indicate employees do not save enough. Our professionals know that we must go above and beyond providing basic education to engage plan participants. While Bell continues to look to technology for digital education and methods for tech-savvy employees, we also make available face-to-face meetings for all employees. Keeping their busy employees in mind, employers have taken advantage of designing a “set it and forget it” strategy for participants. Using this method, participants are automatically enrolled into the plan at a preset deferral percentage with their investments defaulted into an asset-allocation or target-date fund designated in the plan design. For ease, the participant’s deferrals can be automatically increased by the plan’s default percentage or an amount determined by the participant. This can be a hands-off approach making it simple for the participant and easy to administer for the employer.

Find out how Bell State Bank & Trust can help you and your employees save for retirement while your business attracts and maintains talented employees.

Kathy_Eggiman

 

Call Kathy Eggiman at 701-451-3052 to evaluate your retirement plan.

 

 

 

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