Take the High Ground in 2025

This past year has generated a seemingly endless stream of issues and events that mystify, petrify, confuse, and enrage us. Stifling inflation, global conflicts, international trade fears including the possibility of aggressive tariffs, domestic terrorism and the specter of the largest deportation effort in the history of the country.

It’s a hard time to be running a business, which makes it the ideal time to reach for the unimpeachable high ground and as an employer, that means doing the right thing by your customers and your employees. Offering a retirement savings program to employees is not just a financial or business decision—it’s a moral imperative. As companies grow, it’s essential to recognize that the well-being of employees extends beyond their day-to-day responsibilities. Ensuring that they have a secure and stable financial future once they retire is a key aspect of fostering a supportive and responsible work environment. Here’s why offering retirement savings programs is a moral imperative.

Financial Independence

Without a dedicated payroll-deducted retirement plan, many Maryland workers will struggle to save adequately for their later years, leaving them vulnerable to financial hardship in retirement. And when Maryland seniors are vulnerable, then so is the state of Maryland. This dynamic also causes stress and anxiety every day, diminishing their quality of life now.

By offering a retirement savings program, employers can ensure that their workers are not solely dependent on Social Security, which is currently overmatched and inadequate based on the savings profile of Maryland workers. The responsibility of helping employees save for retirement is not just a smart business decision but also a way to invest in their near and long-term happiness and security, but also the financial security of the state.

Promoting Fairness & Inclusiveness

More than a million Maryland workers do not have a retirement savings plan, and research tells us that employees that have a payroll-deducted plan are 15–20 times more likely to save. By providing a retirement savings option for employees, business owners can promote fairness and equity, ensuring that all employees—regardless of their primary language, position or income level—have the opportunity to build a secure future and get some peace of mind.

This gesture will generate trust and loyalty among employees as they will feel valued and supported by their employers. A company that cares for the financial well-being of its workers sends a strong message that it prioritizes their holistic needs, not just their productivity.

Maryland has a Retirement Crisis

The reality is that many Marylanders are underprepared for retirement. According to numerous studies, a significant portion of the workforce is not saving enough for retirement. The lack of sufficient savings can be attributed to various factors such as high living costs, student debt, and insufficient financial literacy. Employers are in a unique position to help bridge this gap. By offering a retirement savings program, employers play an active role in addressing the national retirement crisis. They can ensure that employees have access to tools that can help them achieve long-term financial stability, reducing their reliance on government programs or family support in their later years.

Employee Retention and Satisfaction

Employees are more likely to stay with a company that offers robust benefits, including a retirement savings program. It shows that the employer cares, which helps build loyalty and fosters long-term relationships, continuity, and stability. For a lot of companies, a comprehensive benefits package can differentiate an employer from others, making it easier to attract and retain top talent.

Moreover, retirement savings programs provide a sense of stability. Knowing they have a safety net for the future, employees are likely to feel more secure in their roles and less distracted by financial worries, leading to higher productivity and job satisfaction.

We’re All in this Together

In 2025, we all have to explore how we live up to our social responsibilities of patience, tolerance and participation. Employers have a broader social responsibility to recognize the social contract between employer and employee, where both parties contribute to the success of the business, and in return, employees are supported in their future goals.

Offering a retirement plan isn’t just an act of corporate generosity; it’s part of being a responsible corporate citizen. Companies have an ethical duty to ensure that their workers are not left to face financial insecurity in their later years. Employers also have an opportunity to promote financial literacy among their employees. Offering financial education workshops, guidance on managing personal finances, and explaining retirement options such as the auto IRA can empower employees to make informed financial decisions.

A Moral Obligation

Providing a retirement savings program is more than just a perk or a business strategy; it’s an ethical obligation that reflects a company’s commitment to its employees’ well-being, to the future of the company and the state.

By acting now, employees can bank a whole year of savings, companies can save $300 on their SDAT annual report filing fee and can be a part of the solution to the growing retirement crisis in the state and the country.

MarylandSaves is a state-sponsored auto IRA, but there are a number of available options, and the time to look into them is now.

Happy New Year.