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Allan Henriques
President and Chief Executive Officer Would you like an analysis of your company's current 401(k) plan? Contact Allan Henriques at allan@smart-investor.cc for a complimentary assessment. 
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Your Employees Need Your 401(k) Encouragement Simply setting up a 401(k) plan isn't enough. You need to educate your employees, too. At least that's what Smart Investor takes away from statistics on the gap between the amount people need for retirement and what they've actually saved in their 401(k) plans. A mere $71,500 was the average 401(k) balance across 11 million Fidelity accounts at the end of 2010. This may sound big compared to your employees' salaries. However, it compares unfavorably with the estimated $740,000 "needed to deliver an annual income of $50,000 per year for 25 years, assuming a 5% rate of return and no inflation," according to Morningstar.com's "25 Shocking but True Statistics About Retirement." Increase the inflation expectation to 5% and your employees will need to almost double their savings to $1.25 million to reach the same income goal, according to the same Morningstar.com article. Social Security and Your Employees Social Security is important for your employees' retirement. If you'd like to learn more, check out Fast Facts & Figures About Social Security, 2011, a publication of the Social Security Administration. It's a handy reference guide. It also raises some concerns about Social Security's long-term survival. More than 80% of the 65+ set collects Social Security Based on the experience of past generations, you're likely to receive benefits after you retire. Many Americans aged 65 or older rely on Social Security for more than half of their income.
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