Inspiring Participants Using Automation
- July 29, 2019
- Posted by: Colleen
- Category: Financial Plan, Resources
A key element of “Defining a Retirement Plan Standard of Excellence” is creating a retirement plan which will inspire participants to save for retirement. One method to accomplish this is to automate the plan as much as possible so participants do not have to make uncomfortable decisions.
Properly implementing the auto features available in the regulations can accomplish this goal. The white paper we’ve linked below does a nice job of outlining the benefits of auto features and statistics on the most successful use of auto features.
In its conclusion, the white paper states:
Research clearly shows that plan sponsors can play a pivotal role in helping employees save for a secure retirement.
1. Auto enroll new and existing employees, and include auto escalation as a DC plan default option.
2. Auto enroll and auto escalate employees at robust default levels that are consistent with the goals of the plan.
3. Tailor the matching contribution approach to the goal of helping participants achieve high savings, by increasing the match threshold.
Read the rest by downloading the white paper.