September 07, 2012
--- While
National 401(k) Day is a good trigger to spur action from sponsors and
participants to improve retirement readiness, the efforts should be ongoing. ---
“It is no secret participants’ retirement confidence and
readiness has been shaken by the 2008-2009 economic crisis,” Chris Augelli,
vice president of product marketing and business development for ADP’s
Retirement Services division, told PLANADVISER. “Employers should be
aware that this impacts their business as well; with more than two-thirds of
employees not feeling confident about retirement, they may not be as productive
as they could be.”
The key is meaningful education, according to Augelli. Plan
sponsors should make sure they have targeted messaging. For example, Augelli
said, the content ADP is making available to clients and adviser partners for
401(k) day to help employers with onsite education meetings has been broken
into age-specific messages. For those in their 20s and 30s, it is about getting
started, contributing enough to get match dollars and increasing contributions
over time. The campaign also has messages targeted to employees in their 40s,
50s and 60s that relate to where they are on the path to
retirement.
Lisa Margeson, head of marketing for corporate markets at ING U.S. Retirement, added that plan sponsors should offer
a holistic retirement readiness program that is engaging, personalized and
actionable. “A holistic retirement-readiness program helps employees feel
confident and in control of their financial life by following a proven process
to create a practical, customized approach that builds toward a comfortable and
dignified retirement,” she said. “It should begin by helping the employee
understand the amount of money they will need to live on in retirement and
where their income is going to come from, and follows with help in determining
what they need to do today to be on the right track to achieve that plan.”