Abstract
Many Americans earning more than $50,000 a year will not save enough to maintain their current standard of living into retirement. Personal savings rates are at an all-time low, baby boomers are aging, the future of Social Security remains uncertain and mortality is improving. Although Social Security and qualified plans can provide a solid retirement base, “reverse discrimination” against highly compensated employees results in a retirement gap. How do compensation and benefits managers recruit, retain and reward key employees? This article explores opportunities with nonqualified plans-retirement-planning options for those who “max out” of their qualified plan contributions but still want to set aside more for retirement. The article also covers how a business can finance various plans for a key employee's retirement plan and the advantages and disadvantages of each design and financing method.
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