Here we are four months into a new year and plugging along towards 2024’s goals for your business.
First, thank you so much for your trust, and for allowing us to be the ones you trust to guide you on the path you’re charting for your business.
Since we work with so many Gulf Coast businesses, it’s perhaps obvious that there is far more to what we do than accounting. There is much more to being an effective advisor for your business than simply logging numbers and making sure things match up.
Many business owner clients use our services to help them see what they can’t… and thereby continue to achieve said goals throughout the entire year.
If you’re reading this and don’t use our services and are interested in hearing about what that could look like for YOU, let’s have a chat:
To give you a little taste, let’s talk about one area that really affects the future of your business: retiring from it.
There’s a new-ish buzz word floating around workplaces and among aging workers – flextirement. Have you heard of it?
Basically, it’s a new iteration of the phased retirement approach (that’s not new) that allows employees to gradually ease into full retirement, reducing work hours over time while maintaining some benefits.
If it peaks your interest, you’re not alone. So I want to talk about why this retirement plan might be one you should consider for your Gulf Coast small business and what it could look like.
A New Retirement Plan for Gulf Coast Small Business Owners
“Don’t simply retire from something; have something to retire to.” – Harry Emerson Fosdick
Flextirement — a new approach to retirement where workers gradually phase into retirement — seems to be a trend fueled by, well, other trends.
A recent study showed that 1 in 6 retired Americans are considering returning to work, citing personal reasons, needing more money, getting bored, feeling lonely, and inflation as their top five motivators.
And the number of older employees in the workforce is growing too. The workforce participation rate was 25.8 percent in 2021 for workers aged 65-74, and that number is expected to grow to 30.7 percent by 2031. For 75+ workers, they’re expected to comprise 11.1 percent of the workforce, up almost 3 percent from 2021.
The reality is plain: the number of older employees in your workforce is only growing. And, it’s encouraging to know that many of them actually want to be there, having experienced the other side and recognizing the upsides to a regular work schedule.
Enter flextirement, a retirement plan for small business that could help you serve this segment of your workforce in a way that also benefits your business.
Consider that these folks are already trained, possess valuable industry experience, and can help you manage the knowledge gap among younger employees.
Those are pretty attractive perks for you as a business owner.
Others think so too, with 36 percent of companies now offering phased retirement options as a part of their small business retirement plan, also reporting additional positive stats such as an increase in work satisfaction and reduction in turnover.
But what does this look like practically? Here are a few bullet points to explain flextirement as a viable retirement plan for your small business:
- Reducing work hours: These retirement-aged workers can move to a part-time schedule, giving them more free time for hobbies and interests.
- Meeting the needs of older workers: A tailored work life is appealing to this group who often needs a continued income stream while making room for other life values as they age.
- Maintaining some benefits: Often, health insurance and partial retirement benefits continue while working reduced hours.
- Negotiating the arrangement: Work hours, remote options, benefits, etc. can be negotiated between the employee, supervisor, and HR department.
- Transferring knowledge: Employers can keep that hard-earned knowledge and expertise in-house while gradually transitioning roles.
Is it time for the retirement plan at your small business to pivot? Pass this on to your HR team and your other HR colleagues to explore it further. I think I’ve established that it’s at least worth considering. But I’d love to hear your thoughts — about this idea or any other new business idea you’re considering.
251-666-5551
Looking out for you,
James Thomasson
