If an employer offers an employee benefit, but no one uses it, is it still a benefit?
Too often, employers devote time and resources to selecting the perfect retirement plan for their employees, yet fail to measure and promote the plan once it is in place.
The result? Only 18% of workers believe they will have enough money to live a comfortable lifestyle throughout their retirement.*
Ensuring your plan participants understand their plan and are ready for retirement is important. It not only helps your employees gain financial security, but also reduces your fiduciary liability.
So how can you help make sure your plan participants are retirement ready?
1. Benchmark participant involvement at the plan level. Are employees participating in the plan, taking advantage of the company match and contributing enough to be on track for adequate income replacement? Knowing your plan participant numbers will help you measure plan effectiveness.
2. Educate participants on the importance of retirement planning. Provide participants with the information they need to understand the critical nature of planning for retirement. Offer communications and tools to help them gauge their retirement readiness, as well as the steps necessary to take to improve their retirement planning.
3. Implement automated plan features designed to boost plan participation. Features like automatic enrollment and automatic salary deferral increases can help change participant behavior and prompt them to save more money for retirement without requiring participant action.
Monitoring your retirement plan and ensuring its competitiveness will help your plan participants get the most out of this employee benefit.
Beirne Wealth Consulting has the tools and resources to help plan sponsors measure and promote retirement readiness. Contact Us to learn more about getting your plan participants retirement ready.
About the Author: Matthew Gallagher is Head of Business Development at BWC, responsible for identifying business opportunities, communicating the firm’s unique capabilities and solutions to prospective clients, and cultivating those relationships on an ongoing basis. Matt has more than 25 years of experience in various sales and marketing positions.
*Employee Benefits Research Institute (EBRI) Retirement Confidence Survey, 2014
About Beirne Wealth Consulting Services, LLC
Beirne Wealth Consulting Services, LLC (“BWC”) is a growing, privately owned, SEC Registered Investment Advisor with about $2 billion in assets under management and over 25 employees in Connecticut, Pennsylvania and Florida. BWC provides independent, fee-based investment management services and customized financial planning solutions. Our institutional business provides consulting expertise to defined benefit and defined contribution plans, endowments, foundations and non-profit organizations. Our private clients include high net-worth individuals and prominent families, many of whom bring complex wealth management challenges and multigenerational planning needs. For more information, please visit www.beirnewealth.com or give us a call today at 888-231-6372.