Time to Re-Focus Your Goals for Retirement Plan Success
Market Your PlanPlan sponsors are becoming more paternalistic, and therefore, reaching out more to help participants make informed decisions concerning their retirement. Plan sponsors should ask themselves: Is the plan currently being marketed to participants a valuable component of the company's employee benefits package? If not, how can we better promote the plan?
Focus on Benefit AdequacyParticipants need to be educated on the realities of retirement planning. Oftentimes participants have expectations that aren't entirely realistic, including the appropriate deferral percentage. Plan design can be a key element in dealing with this issue (e.g. automatic enrollment, automatic escalation features).
Understand Plan CostsPlan costs should be readily available, transparent, and meaningful to both plan sponsors and plan participants. Pending final regulations are anticipated to play a major role in ensuring that this happens.
Evaluate Your Target Date Funds*Dont get too caught up with returns alone. Consider risk levels, glide paths, and equity/bond exposures before deciding on a target date fund series which best reflect the needs of your participant demographic.
Maximize Plan DesignWhat's the goal of this plan? Is it maximizing financially sound retirement experiences for participants? If so, what can you do in pursuit of this goal? Whatever the goal, plan design may be a key ingredient in achieving success (e.g. increase your match, shorten the eligibility period, eliminate loan provisions).
Your plan consultant is ready to assist you with all aspects of achieving plan success, from enhancing investment opportunities for participants to protecting plan fiduciaries from liability and loss. Remember, your retirement plan can be a powerful recruiting tool for your company and it is the one benefit that your employees will utilize throughout their lifetime.
*The target date is the date of expected withdrawals at retirement; the fund is not guaranteed at the target date or any other time. These funds are subject to risk, including the loss of principal.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Assurance Financial Services, Ltd and Assurance Agency, Ltd are not affiliated with Kestra IS or Kestra AS. Assurance Financial Services, Ltd is a wholly owned subsidiary of Assurance Agency, Ltd.
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