Americans are leaving their jobs in record numbers as part of the “Great Resignation.” According to the Bureau of Labor Statistics, over 4.5 million employees quit their jobs in November 2021 alone. Job departures are leaving an increasing number of employers searching for ways to retain their employees and become more competitive with job seekers. A 529 college savings plan with The Education Plan® can give employers a competitive edge, while also providing employees peace of mind regarding rising tuition costs.
“One contributing factor to employee resignation is that a lot of workers are quitting to go back to college and gain additional skills for future career growth,” said Carolyn Fittipaldi, Acting Executive Director, Education Trust Board of New Mexico, the state agency that administers The Education Plan®. “A 529 plan is a meaningful and useful benefit to thank your employees for their hard work and help your business stay competitive with its benefits package. By offering The Education Plan®, you can support the financial well-being of your employees and empower them to meet their future education goals and those of their loved ones.”
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The Education Plan® can be implemented at no cost to employers and requires no government reporting, making it a quick and easy employee benefit to include. Employers do not need to match contributions, although matching would make the benefit even more attractive.
529 savings plans are flexible, giving employees an option to save for the future—even if they might not have it mapped out yet. 529 plans can be used at any vocational or trade school, professional school, college or university nationwide to pay for education expenses including tuition, housing, meal plans, books, supplies, computers, and fees. Employees can use the money saved in a 529 plan to pay for their own education, a child’s education or any other loved one’s future education.
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“Many parents and grandparents see the steady rise in tuition and want to give their family and loved ones a head start with funding for college,” added Fittipaldi. “In today’s job market, employees are seeking competitive benefits, and offering your team members an opportunity to save for future expenses can be a huge boost that will contribute to their success and the company’s bottom line.”
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