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Yahoo
2 days ago
- Business
- Yahoo
Salary is just the beginning—These are the latest compensation strategies to attract superstar employees
Job seekers have a lot of factors to think about before they accept a new position. A hefty salary is often their number one priority, but other benefits like health care, 401(k) plans, paid leave, and professional development opportunities are also important. All of those factors together make up the concept of 'total rewards,' and the idea that compensation is about a lot more than just the number on your paycheck. The picture becomes even more complicated for companies now that there are five generations in the workforce. That means employers often need to consider the specific compensation and benefit desires of different groups of employees. For example, retirement funds are top of mind for Gen Xers and millennials. But Gen Z values things like vacation time and work-life balance so much that they're willing to take lower-paying jobs that offer these perks. Fortune sat down with Jeremy Yonan, the vice president of total rewards at Indeed, to get his take on the biggest trends in compensation, how companies can attract superstar employees, and how today's job seekers can get the most out of workplace offerings. This interview has been edited and condensed for clarity. : What are people asking for in their compensation packages? Are there new trends you are seeing? Yonan: Wages are cooling, but expenses are still rising. So what if anything can employees get to maximize the relationship with their employer? There are multiple levers. Additional PTO, depending on your organization and structure, has both a monetary value and a real well-being impact. One extra week of vacation is like a 2% raise in disguise. Think about additional PTO as a way to shop around as you are looking for that next stop. Some organizations, within the last five or six years, have been moving towards student loan repayment programs. Because the U.S. government has enacted SECURE 2.0, there are avenues [in which] employer retirement plans can reallocate that match towards student loan repayments. There's also a professional development stipend. This is one of the biggest, most important things somebody can [use to] take control of their own career. Upskilling is one of the best long-term investments, and many companies have budgets for them. They just don't necessarily advertise them. Then there's wellness and lifestyle spending accounts. These are monthly contributions similar to a flexible spending account (FSA) or dependent care spending account, but geared more towards lifestyle. A lot of companies are really embracing wellness strategies, and if you do demonstrate some progress towards that strategy, that's where you can start participating in these lifestyle spendings. Most of us are already doing the simple things. We eat healthy, we go to the gym, we take daily walks, stuff like that. All you have to do is record it and then submit it to your employer. There's an unwritten currency, and it's called time. It's increasingly what people value most, especially if you have dual working parents and childcare [responsibilities]. Speaking of childcare, there's a growing number of members of the 'sandwich generation': workers who are taking care of both young children and aging parents. How are employers showing up for them? When we think about tailoring total compensation strategies for this group, it's really about acknowledging the dual caregiving burden and providing flexibility, financial support, and emotional well-being resources. Resources like geriatric care management services, elder care navigation benefits, or stipends to offset home care costs can be incredibly valuable. Options like compressed workweeks, remote work, or flexible hours help caregivers manage unpredictable responsibilities without sacrificing career progression. Consider offering caregiver leave that goes beyond FMLA requirements—paid time off to care for aging parents or attend medical appointments. There's also Dependent Care FSAs, Employee Assistance Programs (EAPs), and education and support groups. There's been a lot of debate around return-to-office mandates. How are they fitting into salary and benefit negotiations today? We've all seen the headlines: 'As RTO mandates return, it's becoming a bargaining chip for employers, so you have to get your butts back into the office.' But they don't work, and it leads to attrition. I think that these are mostly lagging indicators that the company will ultimately suffer in productivity and performance, because they're losing and turning over all these employees. Blanket RTOs post-pandemic is just not a productive way to streamline. It's important to do your research first, and even though a company might be completely remote or have hybrid flexibility, it's important to have that conversation upfront with the recruiter to truly understand whether that's something that is still in a test phase. This story was originally featured on Sign in to access your portfolio
Business Wire
20-05-2025
- Business
- Business Wire
MissionSquare strongly supports — and encourages Congress to pass — the Retirement Fairness for Charities and Educational Institutions Act
WASHINGTON--(BUSINESS WIRE)--MissionSquare Retirement announced its support for the Retirement Fairness for Charities and Educational Institutions Act (HR 1013), following today's House Financial Services Committee vote to advance the legislation. The legislation would benefit individuals and companies by offering greater choice and fairness in investment decisions by permitting 403(b) plans to invest in collective investment trusts (CITs). If enacted, MissionSquare believes that the act could help expand access and further build retirement security for all employees. 'Ensuring all working Americans have access to the tools they need to build a secure financial future is critical, and we are encouraged that this remains a priority among lawmakers today,' said Andre Robinson, CEO and president of MissionSquare. 'We urge Congress to advance the Retirement Fairness for Charities and Educational Institutions Act forward as MissionSquare remains strongly in favor of programs that help create parity in investment options across retirement savings programs.' The bipartisan legislation would ensure working Americans in education, charitable organizations, public service, and certain types of health care can access cost-efficient investment options available in all other retirement plan types, such as 401(k)'s and governmental 457(b)'s. While SECURE 2.0 helped move forward the necessary first step to provide 403(b) plans with lower-cost options by allowing CITs or group trusts, the securities law changes needed to make the provision effective were not included in the final bill. 'At MissionSquare, we have long utilized CITs as an effective tool to help reduce costs for the retirement savers we serve. CITs also offer a valuable option for plan administrators to consider when making investment decisions,' said Irica Solomon, head of Corporate Citizenship, Government Affairs and Advocacy at MissionSquare. 'We believe that providing 403(b) and broader retirement plan savers access to these important investment options can offer greater optionality to help strengthen the financial security of the nation's workforce.' MissionSquare remains focused on its mission to help all plan participants retire well, which continues to drive and define the company today. The firm continues to introduce new tools and resources to help individuals and their families build retirement security. About MissionSquare Retirement Since its founding in 1972, MissionSquare Retirement has been dedicated to simplifying the path to retirement security for public service employees. As a mission-based financial services company, we manage and administer over $72.0 billion in assets.* Our commitment to delivering results-oriented retirement plans, education, investments, and personalized advice sets us apart. Explore how we enable public service workers to build a secure financial future. For more information, visit *As of Dec. 31, 2024. Includes 457(b) plans, 401(a) plans, 403(b) plans, Retirement Health Savings plans, Employer Investment Program plans, affiliated IRAs, and investment-only assets.
Yahoo
20-05-2025
- Business
- Yahoo
MissionSquare strongly supports — and encourages Congress to pass — the Retirement Fairness for Charities and Educational Institutions Act
WASHINGTON, May 20, 2025--(BUSINESS WIRE)--MissionSquare Retirement announced its support for the Retirement Fairness for Charities and Educational Institutions Act (HR 1013), following today's House Financial Services Committee vote to advance the legislation. The legislation would benefit individuals and companies by offering greater choice and fairness in investment decisions by permitting 403(b) plans to invest in collective investment trusts (CITs). If enacted, MissionSquare believes that the act could help expand access and further build retirement security for all employees. "Ensuring all working Americans have access to the tools they need to build a secure financial future is critical, and we are encouraged that this remains a priority among lawmakers today," said Andre Robinson, CEO and president of MissionSquare. "We urge Congress to advance the Retirement Fairness for Charities and Educational Institutions Act forward as MissionSquare remains strongly in favor of programs that help create parity in investment options across retirement savings programs." The bipartisan legislation would ensure working Americans in education, charitable organizations, public service, and certain types of health care can access cost-efficient investment options available in all other retirement plan types, such as 401(k)'s and governmental 457(b)'s. While SECURE 2.0 helped move forward the necessary first step to provide 403(b) plans with lower-cost options by allowing CITs or group trusts, the securities law changes needed to make the provision effective were not included in the final bill. "At MissionSquare, we have long utilized CITs as an effective tool to help reduce costs for the retirement savers we serve. CITs also offer a valuable option for plan administrators to consider when making investment decisions," said Irica Solomon, head of Corporate Citizenship, Government Affairs and Advocacy at MissionSquare. "We believe that providing 403(b) and broader retirement plan savers access to these important investment options can offer greater optionality to help strengthen the financial security of the nation's workforce." MissionSquare remains focused on its mission to help all plan participants retire well, which continues to drive and define the company today. The firm continues to introduce new tools and resources to help individuals and their families build retirement security. About MissionSquare Retirement Since its founding in 1972, MissionSquare Retirement has been dedicated to simplifying the path to retirement security for public service employees. As a mission-based financial services company, we manage and administer over $72.0 billion in assets.* Our commitment to delivering results-oriented retirement plans, education, investments, and personalized advice sets us apart. Explore how we enable public service workers to build a secure financial future. For more information, visit *As of Dec. 31, 2024. Includes 457(b) plans, 401(a) plans, 403(b) plans, Retirement Health Savings plans, Employer Investment Program plans, affiliated IRAs, and investment-only assets. View source version on Contacts Media Contact: Laura MaulucciMissionSquare Retirement(202) 655-5420LCMaulucci@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-04-2025
- Business
- Yahoo
Americans are tapping into their retirement savings early. The dos and don'ts of 'hardship withdrawals'
More Americans are tapping into their 401(k) to make ends meet — treating it more like an emergency fund than a retirement savings plan. Hardship withdrawals are running 15% to 20% above the historical norm, Empower CEO Ed Murphy told Bloomberg TV. Empower is the second-largest retirement plan (by number of participants) in the U.S. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) While new rules make it easier to withdraw funds, some people may be turning to their retirement savings as prices on consumer goods — from groceries to cars — tick upward. 'There is a corollary to what you are seeing in the U.S. economy with deferred payments on auto loans and mortgages,' Murphy told Bloomberg TV. 'So that's something we monitor carefully.' Hardship withdrawal rules for 401(k)s changed in 2024, in accordance with the Securing a Strong Retirement Act of 2022 (SECURE 2.0). A hardship withdrawal allows you to withdraw money from your 401(k) to cover an 'immediate and heavy financial need,' according to the Internal Revenue Service (IRS). Some people may be making this decision based on financial hardship, such as housing or medical debt. A new report from Vanguard noted similar findings to Empower, with 4.8% of 401(k) participants initiating a hardship withdrawal in 2024 — up from 3.6% in 2023. While there are a few 'signals of a possible uptick in financial stress,' the report says that for some workers hardship withdrawals 'may serve as a safety net that otherwise may not have been available without plan-implemented automatic solutions.' Another report, this one from the Transamerica Center for Retirement Studies, found that more than eight in 10 (83%) of employed workers are saving for retirement. However, 37% say they've already tapped into their retirement accounts, 'including 31% who have taken a loan and 21% who have taken an early and/or hardship withdrawal,' according to the report. 'Today's workers are stuck between a rock and a hard place,' said Catherine Collinson, CEO and president of Transamerica Institute and TCRS, in a release. 'They are traversing disruptions in the economy, a tenuous employment market, and the high cost of everyday living — while being expected to self-fund a greater portion of their retirement income compared with prior generations.' Add to that the possibility of heading into a recession — with consumer confidence plummeting — and more Americans may find themselves struggling to pay the bills. 'We encourage people to have an emergency savings account, have at least two years of expenses set aside in the event these types of situations occur,' Murphy told Bloomberg TV. Even the IRS is prepared for an increase in hardship withdrawals, stating on its website that 'given the current economic climate, a greater number of participants may be requesting hardship distributions from their retirement plans.' Read more: This hedge fund legend warns US stock market will crash a stunning 80% — claims 'Armageddon' is coming. Don't believe him? He earned 4,144% during COVID. Here's 3 ways to protect yourself The amount you're allowed to withdraw is limited to the amount necessary to 'satisfy that financial need,' according to the IRS. However, if you're under age 59½, your withdrawal could come with a 10% early withdrawal penalty. You may be able to avoid this penalty if you meet the IRS's eligibility for safe harbor distributions, such as the pending foreclosure of your home. But it won't get you out of paying taxes. The money you withdraw from your 401(k) is taxable income, which could potentially bump you into a higher tax bracket. If you're not sure how this could impact your tax bill, it could be worth chatting with a financial advisor. There are also longer-term consequences, such as the loss of compounding growth, which could significantly hinder your retirement goals. That's why a hardship withdrawal is usually considered a last resort. If you've already eaten through your emergency fund, there are still some options you could consider before a hardship withdrawal. For example, you may be able to withdraw from other retirement accounts. A Roth IRA, where you've already paid tax on your contributions, may be a preferable option since you won't be taxed on withdrawals — though you'll still have to pay an early-withdrawal penalty if you're under age 59½. You could also take out a 401(k) loan (versus a hardship withdrawal). That means you pay the money back, but the interest on the loan goes into your account. Check with your HR manager to see if this is an option, since not all plans offer it. You could also look for ways to reduce expenses (like cancelling an upcoming vacation or selling a second vehicle) or earning extra money (such as taking on extra shifts at work or renting out a room in your home). If you've exhausted all other options and decide to make a hardship withdrawal, it's worth consulting a financial advisor as well as your plan advisor so you fully understand how it will impact you now and in your golden years. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
07-04-2025
- Business
- Yahoo
Vanguard finds more Americans are treating their 401(k)s like emergency funds
Life doesn't always go as planned. Maybe you lost your job or you're facing uninsured medical expenses. And maybe you've already run through your emergency savings. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Here are 3 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? It may be tempting to tap into your 401(k), especially if you still have a few decades to go before retirement. But should you? More Americans are treating their 401(k) retirement savings like an emergency fund. That's according to a preview of Vanguard's How America Saves 2025 report, which says that 4.8% of participants initiated a hardship withdrawal in 2024, up from 3.6% in 2023. The full report, based on nearly 5 million defined contribution (DC) plan participants, will be available in June. A hardship withdrawal is a one-time withdrawal from your 401(k) for an 'immediate and heavy financial need,' according to the IRS. This lump sum is limited to 'the amount necessary to satisfy that financial need.' In 2024, 401(k) hardship withdrawal rules changed in accordance with the Securing a Strong Retirement Act of 2022 (SECURE 2.0). 'Given that it's now easier to request a hardship withdrawal and that automatic enrollment is helping more workers save for retirement, especially lower-income workers, a modest increase isn't surprising,' noted the Vanguard report. Overall, despite a 'few signals of a possible uptick in financial stress,' the report noted that participants are 'generally resilient' and 'maintain a long-term approach to retirement saving.' That could be, in part, because of the growing adoption of automatic enrolment (where contributions are automatically deducted from your paycheck) and the growing use of professionally managed allocations, which has helped to increase savings while improving 'age-appropriate equity exposure.' However, these numbers reflect the economic trends of 2024, including real GDP growth, moderating inflation and low unemployment, along with strong consumer spending — though household debt continued to rise during the year. But the economic outlook isn't an sunny in 2025, with analysts lowering their GDP forecast for 2025 and raising the probability of a recession. So it's possible that hardship withdrawals could increase in 2025. 'Given the current economic climate, a greater number of participants may be requesting hardship distributions from their retirement plans,' the IRS currently states on its website updated this month. Read more: Trump warns his tariffs will spark a 'disturbance' in America — use this 1 dead-simple move to help shockproof your retirement plans ASAP Generally speaking, a hardship withdrawal is considered a last resort. If you're thinking about going this route, you may want to exhaust all other options first. If you've already used up your emergency fund, you may want to consider other sources of income. For example, if you have two vehicles, could you sell one of them? Could you take on a side gig to earn extra money? Could you get a roommate to cut down on household expenses? You may be able to withdraw from your other retirement savings, such as a Roth IRA (that could be preferable to a hardship withdrawal, because these contributions have already been taxed). You may want to consult with your financial advisor to crunch the numbers. Another option is a 401(k) loan, which you have to pay back — but at least the interest you pay on the loan goes back into your account. However, not all plans offer 401(k) loans; you'll have to check with your HR department to see if this option is available to you. When you make a hardship withdrawal, that money is considered taxable income. Plus, you'll be subject to a 10% early withdrawal penalty unless you're age 59½ or older or qualify for another exception. These may include the birth or adoption of a child, a federally declared disaster, or total and permanent disability. You may also be able to take one penalty-free withdrawal of up to $1,000 per calendar year for personal or family emergency expenses, but you will have to repay the distribution within three years. There are also the long-term costs of hardship withdrawals. You'll lose out on the compounded earnings you could have made from that money if it was still sitting in your account. If you've exhausted all other options and still decide to go ahead with a hardship withdrawal, talk to your plan administrator so you understand how it works and the potential consequences. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Cost-of-living in America is still out of control — and prices could keep climbing. Use these 3 'real assets' to protect your wealth today, no matter what Trump does This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
