From Perk to Priority: The Growing Importance of Retirement Plans

For years, retirement plans were considered a nice-to-have. They added value to a benefits package but were often overshadowed by more immediate needs like health coverage or paid time off. Today, that dynamic is shifting. Retirement benefits have moved to the forefront of competitive, strategic benefits programs, especially within healthcare practices.

At Stitch PEO, our Benefits Manager, Brandon Trowel, works closely with healthcare organizations navigating this shift. He helps practices design benefits programs that meet both compliance standards and the evolving expectations of today’s workforce.

“The conversation around retirement is different now,” Brandon explains. “We’re seeing more state mandates, but beyond that, there’s a growing urgency around retirement readiness.”

What’s Driving the Shift?

Economic realities and regulatory changes are only part of the story. For many employees, retirement feels less secure than ever.

“We can see the retirement age increasing year after year,” Brandon says, referencing Social Security’s gradual changes that delay official retirement for younger generations. “How we spend our working years—how we save, plan, and invest—determines what our retirement years will look like. If we’re not maximizing those years, people may end up working longer and harder than they expected.”

For healthcare professionals managing stressful, physically demanding roles, long-term financial planning is becoming a priority.

Retirement Benefits Appeal to Every Career Stage

While retirement plans have traditionally been seen as attractive to mid- or late-career employees, Brandon explains they appeal to a much broader group when designed intentionally.

“Early-career clinicians and support staff want to start building financial confidence. Mid-career professionals are seeking more stability beyond what they may have started, if they’ve started at all. And owners or partner physicians are often looking for tax-deferred savings vehicles as they begin thinking seriously about retirement,” he shares.

To be effective, retirement plans should be tailored to these different needs, rather than added as a generic, one-size-fits-all benefit.

The Common Mistake: Treating Retirement Plans Like a Checkbox

Brandon cautions employers not to treat retirement programs as a formality.

“Retirement benefits aren’t just a line item on your budget,” he says. “They’re a reflection of leadership’s mindset. If employees don’t understand the value of compounding, or how employer matches can build financial security, you’ve left both value and trust on the table.”

At Stitch PEO, we encourage employers to start with conversations, not assumptions. Brandon recommends asking:

  • Have we asked employees what matters to them?

  • Do they trust us enough to share honest feedback?

  • Are our contributions structured to support retention?

  • Can we utilize retirement benefits to enhance our company culture?

Retirement as a Competitive Advantage

When done well, a retirement plan is more than a savings tool. It becomes a way to engage employees, build loyalty, and stand out in a competitive market.

“Retirement planning should support both healthcare and long-term financial stability,” Brandon says. “It’s not enough to simply offer a plan. You need to use it to reinforce your values, invest in your team, and attract mission-aligned talent.”

In healthcare, financial wellness is no longer optional. Retirement benefits have officially transitioned from perk to priority, and practices that embrace this shift will be better positioned to retain and support their teams for the long haul.