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Consider new retirement plans

Posted on November 20th, 2012 Read time: 1 minutes

Human resources departments are taking on new roles in business models, working to develop alternative employee benefits and retirement solutions to combat economic challenges. Companies are leaning on human resources departments to pinpoint the best employee benefits to attract new talent, retain current staff and protect the business' financial stability.

The New York Times reported some companies are overhauling their 401(k) plans to provide employees with paychecks for life, well after retirement. Companies are closing their traditional pension plans for new workers, replacing them with new strategies that protect savings from volatile stock market fluctuations. The end result is a retirement pension plan that never runs dry and is less vulnerable to stock market uncertainty.

The new 401(k) retirement strategies being deployed are very similar to existing plans that leverage target-date mutual funds to make investments more conservative overtime for guaranteed payouts. The modern plans, however, also incorporate annuities, which offer a guaranteed monthly income throughout retirement, adding a double layer of financial protection for workers.

Human resources experts can analyze these different types of retirement benefits to help companies select a program that meets the needs of both employees and enterprise success.

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