Executive Compensation

The Challenge

Business owners and key employees are finding it more difficult to adequately save for retirement. Why? Qualified retirement plans and group insurance plans, even Social Security, place limits on contributions, layouts and tax advantages of benefits for highly-paid individuals. Industry retirement professionals suggest we need at least 80% of pre-retirement income to maintain our current standard of living in retirement.

The Income Gap

With qualified plans and Social Security alone, you and your key employees could receive as little as 30% of your current income at retirement - creating a retirement income gap.

Various alternatives exist to provide retirement benefits for key executives to help close this income gap that cannot be provided under 401(k) and other similar tax-qualified plans. ASSURE Financial Services will work with you to design an Executive Benefit plan that is right for you and your employees--one that helps your executives grow their retirement assets and helps your firm manage its cash flow and balance sheet.

This information is from the Principal Financial Group Replacement Ratio Calculator with source information from the Annual Statistical Supplements to the Social Security Bulletin, 2008. It is intended to demonstrate the potential impact of Social Security and 401(k) plan benefits at various income levels. For more information on your individual circumstances, please speak with your financial professional.

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