Sponsors know too well that a lot of planning and consideration goes into the design and maintenance of a retirement plan. But much of that hard work is futile without employee participation. Most employees understand the benefit of saving for retirement, and many are willing to invest funds in their employer’s program. However, they may lack basic understanding of how retirement plans work and may not be confident in selecting investment options on their own. Employees need to understand the benefits of the plan and how to use it in order to recognize its value. A robust employee education program can play a significant role in improving plan participation rates and will reinforce the value of the plan to employees.
