Are Your Employees Participating?
Retirement plan participation and satisfaction are critical for the financial futures of your employees. Studies show that the average employee fails to save enough for his or her ideal retirement. According to Boston College’s Center for Retirement Research, the typical working household approaching retirement with a 401(k) had only $111,000 in combined 401(k) and IRA balances, which translates into less than $400 per month.
A 401(k) plan that fails to provide proper guidance and education can leave your employees falling short. This illustration shows the accumulated shortfall over time when an account earns less than its target goal of 8%:
A bad 401(k) plan can negatively impact your business
If your employees aren’t satisfied with your 401(k) plan, you’ll start to see lower participation rates. Some workers may then be forced to delay retirement, leading to lower productivity and higher healthcare costs as your workforce ages. Additionally, poor engagement may indicate that your fiduciary duties are unmet.
In today’s competitive labor market, your retirement plan can be a contributing factor in attracting and retaining top talent. You need a plan employees will fully utilize over the course of their careers – for their own good and yours. That’s why our services focus on empowering your employees to get the most out of your retirement plan in three key areas: quality investment options, financial adviser support, and continuous retirement plan education.