The Retirement Readiness Report Card tracks four participant attributes to gauge a plan’s ability to achieve positive retirement outcomes. These include investment portfolio allocations, savings rates, age demographics, and income replacement percentages. Great-West says the tool should help sponsors and advisers enact plan design strategies that improve participants’ likelihood of being financially prepared for retirement.
Great-West Financial affiliate Advised Assets Group, LLC delivers the tool in collaboration with Ibbotson Associates, part of Morningstar’s Investment Management Group, which helped develop the report card. The tool works by first collecting information on plan participants provided by sponsors and Great-West. Then the information is uploaded into the Ibbotson Wealth Forecasting Engine, which analyzes and aggregates the data.
Plan sponsors can then review the report card results with their advisers. Together, they can take action to adjust the retirement plan and participant communications to address any weaknesses. The tool also allows for quarterly tracking of plan outcomes.
The Retirement Readiness Report Card is available free of charge to plans that use Advised Assets Group’s advisory services. More information is available here.