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Home » Hauser Insurance Group Executive Breaks Down Types of Retirement Plans for the Private Sector

Hauser Insurance Group Executive Breaks Down Types of Retirement Plans for the Private Sector

Hauser Insurance Group, an industry leader in retirement planning and employee benefit products, recently defined the three major types of individual retirement arrangements for businesses in the private sector. Each type meets organizational and reporting requirements enforced by the Internal Revenue Service (IRS).  Do keep in mind that if you are seeking financial advice it is always best to research retirement planning near me.

Defined Benefit Plans

As its name suggests, a defined benefit guarantees participants a set amount of income each month after retirement. The amount of the benefit corresponds to a percentage of the employee’s monthly pay multiplied by the number of years of service. In order to fulfill their end of the agreement, employers must create a plan to ensure they contribute enough money each month to make the retirement benefit possible.

Hauser Insurance Group points out that both employers and employees benefit from defined benefit plans for retirement. However, this plan can be challenging to establish and execute without in-depth knowledge of the retirement planning industry. Working with a financial planning organization like Hauser ensures that clients have the greatest understanding of this and all other retirement savings benefit plans.

Defined Contribution Plans

This retirement savings plan does not guarantee that the employee will receive a specific monthly benefit after retirement. Additionally, funding this account requires employer contributions and possibly contributions from the employee. Plan contributions are a set percentage that occurs according to a predetermined schedule. Employees receive all their own contributions, the employer’s contributions, and any gains on the retirement savings account since they opened it. They also assume the risk that their retirement savings account may lose money instead.

Individual Retirement Agreements (IRA)

Employers that offer an IRA agree to help fund a specific employee’s retirement. While employees are free to open an IRA independent of their employer, the latter typically has more experience with establishing and funding this type of account. IRAs operate on a market investment principal, which means the value of an employee’s account at retirement reflects gains or losses representing overall market performance.

Which Plan Does Hauser Insurance Group Recommend?

Hauser does not recommend a specific type of retirement savings plan for employers but rather guides them in making their own decisions. A common suggestion Hauser Insurance Group retirement experts make to clients is to review the in-depth information about each of these three retirement savings benefits from the IRS. This publication, plus input from the seasoned professionals at Hauser, helps clients to make the best possible decision for the financial future of their employees.

About Hauser Insurance Group

Established in Cincinnati, Ohio, in 1971, Hauser Insurance operates six additional businesses in major market locations today. Hauser Insurance offers guidance on risk management, insurance, and retirement savings for companies of all sizes across all types of industries. The amount of the benefit corresponds to a percentage of the employee’s monthly pay multiplied by the number of years of service. In order to fulfill their end of the agreement, employers must create a plan to ensure they contribute enough money each month to make the retirement benefit possible.

Plan contributions are a set percentage that occurs according to a predetermined schedule. Employees receive all their own contributions, the employer’s contributions, and any gains on the retirement savings account since they opened it. They also assume the risk that their retirement savings account may lose money instead.

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