Products February 22, 2016

Paragon Alliance Unveils New Website

A Pennsylvania TPA, the Paragon Alliance Group, has rolled out a website with enhancements to make its website more mobile-friendly.
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The website and brand-refresh align more closely with the company’s vision for growth and expansion over the next decade, according to Rob Wisner, president of Paragon Alliance Group, a regional benefits consulting and third-party administration (TPA) firm.

The website now supports mobile technology, since so many advisers and customers conduct business on mobile devices. Capabilities allow customers and partners to get the information they need and communicate securely with the provider’s staff. New areas of the site offer educational materials, reference guides and resources. Current partners can access educational and marketing materials, as well as monthly industry best practices, via password-protected areas.

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For customers, educational information and resources are presented to support plan sponsors in servicing 401(k) plans. Plan sponsors also have access to a secure portal, emphasizing the TPA’s commitment to data confidentiality.

“Our old website did not reflect the level of service and expertise that we claim as our hallmark, so we invested our resources into highlighting just how much knowledge and experience we bring to the table,” Wisner says. The firm turned its most-frequently heard questions into a Q-and-A page on the site, added reference materials, a schedule of key dates and tips to help customers manage their retirement plans.

The goal, according to Wisner, is to provide an access point for companies and individuals to learn about the firm’s product solutions and how these address a plan sponsor’s daily life and work experience. While customers can use direct lines and emails to correspond with service representatives, Wisner emphasizes that a secure portal for the exchange of confidential data allows customers to upload files with confidence in the security of Paragon’s site.

Paragon’s website also provides social media integration and direct links to Facebook, Twitter and LinkedIn pages, where the TPA plans to regularly post company and service updates, helping customers and advisers stay abreast of industry regulations.

More information is at the Paragon Alliance Group’s website.
Data & Research February 22, 2016

Even Occasional Savings Bumps Can Boost Retirement Outcomes

Fidelity realizes retirement plan participants have competing financial priorities and don't feel they can increase their savings every year.
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During America Saves Week, an annual campaign, Fidelity urges people to start saving as early as possible, and if they can, increase savings each year during the campaign, even if only by a small amount.

Fidelity recommends participants save 15% toward retirement, including their pre-tax deferrals and any contributions their employers make.

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Last year, Fidelity examined the benefit of increasing 401(k) or 403(b) savings by just 1% for people ages 25 to 55. Each age saw additional estimated monthly retirement income, especially the 25-year-old. This year Fidelity took the analysis a step further, studying three increase scenarios to demonstrate the power of establishing ongoing savings rituals when young.

First, a 25-year-old earning $40,000 who increases his deferral this year by 1% could receive additional income in retirement of $190 per month.

Fidelity recognizes that Millennials will have a lot of expenses during their working lives, such as saving for a home, paying off student debt or unexpected health care costs. With this in mind, Fidelity studied the benefit of increasing savings by 1% every five years for a total increase of 5% over 25 years. Those who adopt this pattern could receive $690 more in monthly retirement income.

The impact is even greater if a 25-year-old begins a savings ritual where they increase their deferral by 1% annually for a total of 12 increases. Under this scenario, he could receive $1,930 per month in extra retirement income.

NEXT: Lessons for plan sponsors and participants

“Saving 1% at a point in time, and bumping up savings by 1% every year is good,” Katie Taylor, director of Thought Leadership at Fidelity in Boston, tells PLANADVISER. “But what about those in the middle with competing financial priorities?”

Taylor says employees understand the need to increase savings every year, but feel like they can’t. Fidelity’s scenario shows the benefit of increasing savings every so often.

“We had a really successful campaign last year. Some folks are intimidated and feel can’t save any more, but seeing what 1% can do encourages them,” Taylor adds.

She noted that plan sponsors are challenged a little bit with how to engage participants to save more, particularly with Millennials for whom retirement is so far away. “Using America Saves Week and tools and resources available will help plan sponsors with a strategy to help individuals save more,” she says.

However, encouragement doesn’t just have to come during America Saves week; plan sponsors can promote more savings when employees get a raise, at the beginning of the year and at the end of the year, according to Taylor.

She adds that overall financial wellness tools and education can help employees with budgeting, debt and college savings. “And, plan sponsors can use automatic enrollment, automatic deferral escalation and campaigns such as America Saves Week to encourage employees to save and save more.”

NEXT: Resources Fidelity offers

Fidelity offers many resources for retirement plan participants.

  • Join the conversation tomorrow during Fidelity’s Twitter Chat on Tuesday, February 23 from 2:00-3:00 p.m. ET by following #AutoSave16, @Jeanne_Fidelity, @SweeneyFidelity or @Fidelity;
  • Register for the Empowering Conversations Webcast on March 8 to help women learn to prepare for the unexpected;
  • Learn your Retirement Score, an estimate of your ability to cover expenses in retirement;
  • Have a child working? Give them a jumpstart on retirement saving and help them learn the power of compounding by opening a Roth IRA for Kids; and
  • Visit Fidelity Viewpoints for education about college savings, paying off debt, Social Security, health care and how one percent more can make a big difference.

Fidelity also offers a savings and spending checkup.

 

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