Making financial planning convenient greatly increases plan participation.
To say that retirement planning is a brave, new world is
becoming quite the understatement. In its latest U.S. Employee Benefit Trends
Study, MetLife uncovered a surprising statistic: 53 percent of employees
surveyed say that financial planning programs are important for increasing
their loyalty to their employers.
Unfortunately, employers aren’t getting the memo. That same
study shows that just 18 percent currently offer financial planning programs.
It’s not as though they don’t see the value, either: 36 percent of employers
agree that wellness benefits and financial planning programs are valued by
their employees. And 83 percent of employers surveyed are calling retention a
top priority of their benefits program.
Yet many plan sponsors are unsure where to start. Here are some
strategies you can present to your plan sponsors that can help their employees
achieve their retirement goals:
the annual benefits presentation and Q&A, retirement advisors can suggest a
periodic schedule of financial planning sessions that help plan participants
understand their options and get answers that could improve their outcomes.
coaching. Help your plan sponsors make financial planning a partnership. By
holding one-on-one sessions with plan participants, you can help your clients
improve the overall satisfaction level their employees have with their benefits
campaigns. Plan sponsors can vastly improve an employee’s financial
literacy simply by offering financial content in their email. Work with plan
sponsors to develop a regular delivery schedule that highlights what plan
participants are most interested in knowing.
Online tools. For
those plan participants wanting to go it alone, help your plan sponsors develop
an online portal of financial planning tools. Calculators, article
repositories, and explanations of investment options are good options.
Onsite service. Making financial planning convenient greatly increases plan participation. Hold workshops and coaching during breaks and lunch hours. Schedule coaching before and after work hours. In other words, make it easy for participants to actively participate in their retirement planning.
Why it Matters
According to a Wells Fargo white paper, the financial wellness of employees gained through voluntary benefits programs such as financial planning improves their productivity, reduces health care costs (stress-related illness), and improve retention rates.
For retirement advisors looking to improve their own client loyalty, helping plan sponsors build engagement processes around their voluntary benefits can help improve plan participation, employee satisfaction and company loyalty.
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