Implementing Employee Education and Plan Design Strategies

How to Help Boost Employees’ Retirement Readiness

Employers are more intent than ever to help employees address their short- and long- term financial concerns by refreshing their 401(k) plans to give employees the chance to save more for retirement.

Encouraging Employees to Save More

With inflation at a 40-year high with no signs of abating and post-pandemic stress causing one- third of employees to be less confident about their retirement, plan sponsors can emphasize employee education around accelerating 401(k) contributions and can create retirement plan features that encourage employees to build savings.

Adopt an Innovative Contribution Strategy

In a survey of defined contribution plan sponsors, 75% made a change to their plan in the last two years to improve their employees’ retirement security and financial well-being.¹

Here are a few plan innovations to consider if you haven’t yet put them in place:

• Allow participants to use plan contributions to reduce student loan debt while as the employer, you make matching contributions (a concept proposed by the House in its recent Secure Act 2.0 legislation).
• Establish automatic deferral features, including auto enrollment and auto acceleration.
• Offer access to personalized support including digital tools for budgeting and spending.

Design a Financial Education Program

Rather than deluge employees with too much information, plan sponsors may be more effective if they do the following:

• Choose a specific goal, such as getting plan participants to increase the amount they are saving.
• Avoid jargon in communications since most employees aren’t trained financial professionals.
• Use visuals and infographics to make your communications easy to digest.
• Track participants’ progress toward retirement goals after you’ve engaged them in a communications campaign on saving.

Use Plan Enhancements to Attract and Retain Employees

In addition to meeting your fiduciary responsibility to employees, bumping up your education efforts and making changes to your retirement plan can serve as a tool to both attract and retain employees.

Among defined contribution plan sponsors surveyed, more than a third (36%) of those consider their plan to be a valuable tool to attract and retain employees.¹ By making enhancements to your plan, it might help differentiate your company from the competition when recruiting employees. And employees tend to view retirement benefits as a reason to stay or join a company.²

Meet With Our Team

The Retirement Plan Solutions team at Mariner Wealth Advisors can evaluate your current plan and educational resources.

We offer virtual and in-person meetings, webinars and educational collateral to help educate your employees so they can feel better prepared for retirement.

Sources:

¹“Next Evolution of DC Plans Survey”

²“Plan Sponsors Adding 401(k) Enhancements”

This article is limited to the dissemination of general information pertaining to Mariner Wealth Advisors’ investment advisory services and general economic market conditions. The views expressed are for commentary purposes only and do not take into account any individual personal, financial, or tax considerations. As such, the information contained herein is not intended to be personal legal, investment or tax advice or a solicitation to buy or sell any security or engage in a particular investment strategy. Nothing herein should be relied upon as such, and there is no guarantee that any claims made will come to pass. Any opinions and forecasts contained herein are based on information and sources of information deemed to be reliable, but Mariner Wealth Advisors does not warrant the accuracy of the information that this opinion and forecast is based upon. You should note that the materials are provided “as is” without any express or implied warranties. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

Mariner Wealth Advisors (“MWA”), is an SEC registered investment adviser with its principal place of business in the State of Kansas. Registration of an investment adviser does not imply a certain level of skill or training. MWA is in compliance with the current notice filing requirements imposed upon registered investment advisers by those states in which MWA maintains clients. MWA may only transact business in those states in which it is notice filed or qualifies for an exemption or exclusion from notice filing requirements. Any subsequent, direct communication by MWA with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For additional information about MWA, including fees and services, please contact MWA or refer to the Investment Adviser Public Disclosure website. Please read the disclosure statement carefully before you invest or send money.