Three in ten workers report feeling mentally or emotionally stressed about preparing for retirement
When it comes to retirement income, plan participants still
feel they have a long way to go.
According to the 2017 Retirement Confidence Survey by
Employee Benefit Research Institute (EBRI) and Greenwald & Associates,
plenty of American workers are stressed about retirement and yet doing little
to change their fortunes. Three in ten workers report feeling mentally or
emotionally stressed about preparing for retirement, and 30 percent say their
worries about personal finances follow them to work, with half of those
respondents saying the worry is impacting their productivity.
Yet the same survey shows that few workers are actively
trying to resolve their dilemmas. Just 4 in 10 say they’ve tried to figure out
how much money they’ll need in retirement. And just 38 percent have calculated
what income they would need monthly during retirement.
For advisors and plan sponsors, there is some good news.
Over half of those surveyed (52 percent) say that retirement planning programs
would boost their productivity. That means roughly half of plan participants
are eager to take part in educational programs or receive educational materials
that will help them set and reach their retirement goals.
Advisors and plan sponsors should start here:
participants. Before sending out emails or filling up your online resource
center with information, get to know your plan population. What factors are
impacting their finances now and in the future? What is their savings behavior
currently? The answers can help you devise a better educational mix that makes
saving for retirement easier.
Educate using methods
they’ll notice. In advertising, messaging is spread across any number of
media in order to reach the maximum number of consumers. The same goes for plan
participants. Create multiple communication streams to reach the largest number
of plan participants. Try email, printed communication, online resources,
virtual meetings and in-person sessions to ensure you’re getting in front of as
many participants as you can.
Create a retirement
planning event. Advisors and plan sponsors can set aside one day a year to
work one-on-one and in group sessions to help participants review their
retirement plans. Are they taking full advantage of employer match? Are they
saving enough monthly? How could considering a different investment mix
increase results? Give hypothetical samples to illustrate the impact of various
options on the retirement portfolio.
how to automate. Are they enrolled in automatic annual contribution
increases? Are they using online tools to help match their savings window with
appropriate investment options?
Rely on worksheets.
Sometimes the easiest way to give participants a comprehensive view of their
retirement income is to have them calculate it.
Monthly living expenses worksheets and monthly income worksheets can
help participants see exactly what they can expect in retirement, and help them
make adjustments as needed.
Retirement advisors and plan sponsors can be the missing link to a participant’s retirement health. By implementing simple educational tools and methods, advisors and sponsors can help their participants achieve a happier, more stress-free retirement.
Before leaping into the unknown, we recommend a thorough examination of your plan. Because we are experts in the field, we know the marketplace and know what your existing vendor is capable of offering. Through this examination, we can help you optimize the service you receive.get xpress proposal