All these strategies can be employed today and have proven themselves effective. It’s unclear that disclosing projected retirement income will provide the kind of incentive that will work.
Plan Sponsors
It’s not as if this “surprisingly secret” formula has run its course. The equation is so timeless, so simple, that it continues to work for those who have the disciple to follow its rules. Still, can today’s workers see this work for them?
Perhaps the first option to focus on is that one that involves “paying back” or “not paying back.” The rules, while straightforward to financial professionals, may be less apparent to retirement savers.
If plan sponsors want to alleviate retirement angst among plan participants, they need to ensure they provide full transparency regarding factors that extend beyond the plan. Plan sponsors have an obligation to explain their retirement benefits within the context of these outside factors.
The good news is 401k plan sponsors don’t need to treat this as a solo act. They’ve already got a team of hired hands to help them.
Many see the quarantine as a test run for retirement. There are those who view this “test run” and say they never want to retire. How do you dissuade them of this notion that they’re practicing retirement right now?
Much, if not all, of the Zoom hacking could have been prevented if the meeting hosts had just followed a few common sense rules. They start with before you even set up the meeting.
What’s the biggest challenge for those responsible for administrating their company’s 401k plan while working from home? How is that challenge best overcome?
With the large influx of employees working from home, telecommuting may be here to stay. Companies need to rethink how they’ve addressed 401k communications in the past. One never knows when the “new” normal will appear.
Now is the time for 401k plan sponsors to seize their fiduciary mantle and provide the guidance and tools plan participants need to dodge emotional decisions that could ruin their chance for a comfortable retirement.
