Why Retirement Financial Planning Should be a Prime HR Responsibility (Part 1)
Do not believe those affirmations by key executives, because who knows if they feather their nests and those of their cronies? The 2007 agreements between the auto Sheikhs of Detroit and trade unions can be viewed as classics of abusing shop floor workers, because the bottom lines of these specious negotiations are that employees are on their own when it comes to retirement financial planning?
Why expect employees to be committed, loyal, and quality conscious, if they are ripped off completely when it comes to their financial planning interests? Management literature is so full of how to develop and to lead teams, so why not ask the Human Resource guys and gals to shoulder responsibilities for retirement financial planning. This is not to suggest that employers should dictate choices of the people who work for them, but to underscore the need to be transparent, fair, and compliant in terms of the rights of people.
QACA as a Financial Planning Gift for Employees
The Qualified Automatic Contribution Arrangement (QACA) system is an effective plank for US corporations to develop competitive advantages through superior human resources. A company that uses QACA to help all its employees with retirement financial planning demonstrates its priority for its people. The best talent around can be expected to reflect that it is worth staying with a company that is pro-active and diligent in extending QACA benefits. QACA is so strongly conditional on egalitarian practices by participating companies that the government even exempts them from time-consuming and expensive controls in this respect.
QACA is a voluntary and discretionary form of retirement financial planning. No human resources professional can force you to participate, or even decide how much of current earnings you set aside for the future of your loved ones and yourself. What is special about QACA? Why should you make it a fulcrum of your retirement financial planning? QACA starts with 3% of compensation in a first year, and climbs steadily to a ceiling of 10%. It is therefore affordable in terms of a current household budget and significant in retirement financial planning terms as well. It is a reliable balance between your short term and future financial interests.