Your top executives are not worried about whether they have a retirement plan. They all have 401(k)s. They’re maxing them out. And they know—with certainty—that it won’t be enough. 

An executive earning $400,000 who retires at 65 will receive approximately $130,000–$150,000 in combined annual income from their 401(k) and Social Security. Their target retirement income is $280,000. The gap—roughly $130,000–$150,000 per year—is the retirement income deficit that qualified plans cannot close. 

Why They’re Not Bringing It Up 

Most executives won’t walk into their CEO’s office and say, “My retirement plan is inadequate.” They’ll simply take the call from the recruiter. They’ll evaluate the competing offer. And if the competing company addresses the gap—through a SERP, deferred compensation, equity, or some combination—the executive now has a financial reason to leave that has nothing to do with dissatisfaction. 

The danger is not that your executives are unhappy. It’s that they’re rational. They are making financial calculations about their future, and if your company isn’t part of the solution, you’re part of the problem. 

What Closing the Gap Looks Like 

Supplemental Executive Retirement Plans (SERPs) are designed specifically to solve this problem. A SERP provides a targeted retirement benefit—calculated to fill the exact gap between the executive’s qualified plan benefit and their target income—funded informally through corporate-owned life insurance that accumulates tax-deferred and ultimately recovers the company’s cost through the death benefit. 

Critically, SERPs include vesting schedules—typically 5–10 years—that require the executive to stay to earn the benefit. The executive who leaves forfeits the unvested portion. This is the golden handcuff: a quantifiable financial incentive to remain that grows more valuable every year. 

For a private company that can’t offer stock options or RSUs, a SERP is the most effective long-term retention tool available. SSG Financial Group designs these plans to close the specific gap for each executive while ensuring the company’s net cost is recovered over time. Schedule a 20-minute consultation to explore what this could look like for your team. 

Ready to explore executive benefit strategies for your company? 

Schedule a complimentary 20-minute consultation with SSG Financial Group. 

Book Your 20-Minute Consultation 

Learn more at www.ssgfingrp.com 

About SSG Financial Group 

SSG Financial Group provides integrated insurance and financial planning solutions for business owners, their executive teams, and their advisory partners. Our focus areas include executive benefits, wealth transfer, business transition planning, and ESOP repurchase liability funding. 



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