Managed account options are generating more attention in the retirement savings arena. But, do they make sense (and dollars) for your plan and its participants?
Tailored assistance to investors who want help crafting a well-rounded portfolio sounds like a great idea. But it doesn’t make sense for everyone. Review your plan, participants and other considerations before taking the plunge into more sophisticated and more costly investment options.
Companies and institutions that sponsor retirement savings plans work hard to develop attractive options that will encourage participants to save and invest for retirement. However, in spite of considerable efforts (and resources spent) to educate plan participants on the fund choices, the value of the benefit and company matches, employees are not taking full advantage of their plan and many are not feeling secure their retirement savings are adequate.
When asked why they did not participate in their employer’s 401(k) plan, 40 percent of respondents to a survey said they did not have time to enroll. Nearly an equal percent said they did not earn enough, and 19 percent cited the hassle of enrollment as the reason for non-participation. These concerns, as well as other factors, could be affecting the participation and retirement readiness of the employees of your organization. Here are a few ways you can address these common concerns and increase plan participation rates.
You’ve probably heard the term “financial wellness” being thrown around in business circles, as a way for individuals to describe a sense of financial security, of understanding their financial options, and building a monetary foundation in order to pursue future goals. But what ways can you, as plan sponsors, ensure financial wellness for your employees?