Retirement & Succession Planning
Retirement & Succession Planning
In today’s highly-competitive marketplace, it is becoming increasingly difficult to attract and retain top talent. Salary is no longer the sole compensation driver. Employees are also looking at an employer’s overall benefits package and its potential to help protect their families and adequately prepare them for retirement. These concerns are heightened by ever-changing tax laws, pension plan uncertainties, and Social Security shortfalls. As a business owner, you can offer insurance and retirement benefits that can make a difference for both your executives and your business.1
Providing for your employees’ retirement can create a loyal and dedicated community around your business. A variety of retirement-planning products exist to provide the benefits that support your employees’ commitment to your business.
The death or disability of an owner is one of the greatest threats to a business. Not only can it severely impact the day-to-day operation of the business, but it can raise all sorts of business succession and estate tax problems – proper succession planning can help.
Succession planning affects everyone who has an interest in the business—business partners, family members, and key employees. It is critical that you have meaningful discussions about often overlooked issues, such as who the ideal successor should be, what is the value of the business, and what is the timetable for transition. No matter what event occurs, either expected or unexpected, we can help you develop a succession plan that can help ensure a smooth transition according to your vision for the business’ future.
Consider a few of the following options:
Annuities
Establishing individual retirement arrangements funded by annuities is easy for a small business. Offering this type of benefit may help you retain and motivate your company's employees.
Disability Income Insurance
Provide employees with income protection that supplements your company's group long term disability plan in the event of a disability.
Life Insurance
Learn how life insurance can supplement2 your employees’ retirement planning strategy to help align with the goals of their golden years.
Retirement Plans
Offering your employees a retirement plan is a way to help them save for the future and is a great incentive as part of an employee benefits package.
Long Term Care Insurance
Help retain your employees and enhance your company's benefits while taking advantage of tax savings.
1 There may be implications under the Employment Retirement Income Security Act (ERISA) depending on how certain types of insurance policies are made available to employees and whether such an arrangement constitutes an “employee benefit plan” under ERISA. Employers should consult their own tax and legal financial professionals for further information on potential ERISA implications.
2 Distributions under the policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (the cost basis). If the policy is a Modified Endowment Contract, policy loans and/or distributions are taxable to the extent of gain and are subject to a 10% tax penalty. Access to cash values through borrowing or partial surrenders can reduce the policy’s cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.
CRN202207-265619