Shifting Burden of Retirement – And What It Means for Your Workforce
By Kyle Sumple, AIF® CPFA®
For decades, American workers relied on pensions to provide financial security in retirement. Employers bore the responsibility — funding and managing defined benefit plans that guaranteed income for life. But over time, the retirement savings model changed dramatically.
Today, the dominant vehicle is the 401(k) — a system that shifted the burden squarely onto employees.
In theory, this shift empowered workers with control and flexibility. In practice? Many employees, especially in the construction industry, struggle to navigate complex investment choices, lack confidence in financial decisions, and often fail to save enough. The result: a workforce unprepared for retirement — even after decades of hard work.
Is the Pendulum Starting to Swing Back?
Construction company owners are beginning to ask tough, empathetic questions:
- What happens when a loyal employee of 25+ years can’t afford to retire?
- How do I feel as an owner knowing someone gave their career to this company — but isn’t financially ready to step away?
- Am I doing enough to support their future?
These aren’t just emotional questions — they can carry real business consequences:
- Aging employees unable to retire increase healthcare costs and turnover risk.
- Financial stress can lead to decreased productivity, absenteeism, and even safety issues.
- Talent retention suffers when younger employees don’t see long-term value in their
benefits.
The Employer’s Role is Evolving Again
The data is clear: left entirely to their own devices, many employees aren’t saving enough. And so, the retirement burden is shifting again — not fully back to the employer, but toward a more balanced partnership.
More and more construction firms — especially ESOPs and family-run businesses — are stepping up. Not just with strong, compliant retirement plan designs, but with education, engagement, and ongoing support. They’re viewing employee financial wellness as a strategic priority, not a compliance checkbox.
So what should you be asking?
1. Are our benefits competitive?
In a tight labor market, your 401(k), profit-sharing, and ESOP benefits play a key role in attracting and retaining skilled workers. Do your offerings stand out?
2. Are we compliant?
Evolving DOL and IRS requirements make it critical to ensure your plan is in good standing — particularly for prevailing wage and safe harbor rules in construction.
3. Are we investing in education?
A compliant plan alone isn’t enough. Employees need to understand their benefits. That means offering resources, hosting trainings, and giving them access to real conversations about their financial futures.
4. Are we fostering long-term loyalty?
When employees see that you’re invested in their future, they’re more likely to invest in yours — showing up every day with pride, productivity, and commitment.
Closing Thought:
Retirement readiness doesn’t happen by accident. It happens when company leadership chooses to act — to offer meaningful benefits, educate their workforce, and support a culture of financial empowerment.
In construction, where loyalty and longevity are often hallmarks of success, we think that matters.
If you’re ready to re-evaluate your approach or want to benchmark how your plan stacks up, let’s start a conversation.
Todd McDonald, AIF® Certified Family Business Specialist®
Founding Partner, Wealth Management Advisor
Kyle Sumple, AIF® CPFA®
Partner, Wealth Management Advisor
Kevin Reich, CFA®
Investment Director
