Why Taft-Hartley plans are important in today’s labor market
Like many unions, you’re probably searching for ways to address the growing shortage of skilled tradespeople. Offering a competitive Taft-Hartley retirement plan can play an important role in helping you attract and retain members, so consider making it part of your benefits package.
Union workers expect retirement benefits
While members appreciate a competitive wage and ongoing training, they also expect employers to help them save for their future. In fact, 79% are unlikely to work for an employer that doesn’t offer a retirement plan.1 So all else being equal, your Taft-Hartley plan (also referred to as a multiemployer plan) could be the deciding factor for members considering multiple job opportunities.
Addressing members’ retirement concerns can help increase loyalty
This expectation isn’t that surprising when you consider nearly half of surveyed members (47%) say saving for retirement is one of their top financial concerns.1 They’re worried about the progress they’re making and what it could mean for their future.
- 52% say their retirement savings is behind schedule1
- 31% expect to retire later than planned1
- 48% worry about affording basic expenses and healthcare in retirement1
Your Taft-Hartley defined benefit or defined contribution plan can be a simple way to help ease these concerns while showing members you’re invested in their financial well-being—both of which can help you build good will.
Member engagement with Taft-Hartley plans is high
A retirement plan alone, however, won't help with recruitment and retention. Members also need to value and engage with the plan—and it appears that they do.
- 49% opened six or more emails they received about retirement planning1
- 75% logged in to their retirement account in 20221
- The average account balance is over $98,0001
Consider these steps to help optimize your plan
So how can you help make sure you’re offering a competitive Taft-Hartley plan that your members appreciate?
- Benchmark your plan against others in your industry and area
- Survey members to gauge their opinion of your plan
- Evaluate your plan design and potential enhancements
- Assess your current communication strategy
- Look for new opportunities to promote your plan with prospective and existing members
And be sure to include your plan’s financial professional in the discussions. They can help you make informed decisions based on your unique needs and goals.
Make your union the top choice for skilled tradespeople
Individuals weighing a career in the trades often consider many factors, including their future financial security. A competitive Taft-Hartley retirement plan may help tip the scale in your direction.
1 In December 2022, John Hancock commissioned our ninth annual financial stress and well-being survey with the research firm Edelman Public Relations Worldwide Canada (Edelman). An online survey of 3,825 John Hancock plan participants was conducted between 11/29/22 and 12/14/22 to learn more about individual stress levels, their causes and effects, and strategies for relief. John Hancock and Edelman are not affiliated, and neither is responsible for the liabilities of the other.
Important disclosures
The content of this document is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Please consult your own independent advisor as to any investment, tax, or legal statements made.
Intended for plan sponsors
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