Retirement plans can be a great benefit for drawing and retaining employees. However, is your retirement plan deemed attractive to current and potential employees? How does it compare to other employers you consider peers? An attractive DC plan does not happen by chance – it requires thoughtful plan design. If you craft a plan prudently and with their retirement in sight, it will be beneficial to both your company and your participants. We have helped many plan sponsors with their plan design and observed the main attributes that make a successful retirement plan program.
Improving Employee Retirement Readiness
Recently, the focus of plan sponsors has shifted from reducing plan costs to ensuring plan participants’ retirement readiness and helping them set accurate retirement goals. As a result, the majority of sponsors are working to improve investment menus and change their plan design. Those, however, are only some parts of the overall picture for improving employee retirement readiness.
What retirees are the least prepared for and need the most help with are understanding how long their money will last in retirement, knowing how much they will need when they retire and preparing for the risks inherent to retirement. Here are four key aspects plan sponsors should consider to help plan participants aptly prepare for retirement.