While employers cited rising health care costs followed by outliving retirement savings as their biggest concerns for employees' retirement readiness, TIAA says surprisingly few have built retirement plan offerings that solve for these challenges.
Adding automatic deferral escalation and stretching the match are settlor functions because they are plan amendments, so plan sponsors should not fear fiduciary litigation, even if to some participants these changes seem to be not in their best interest.
“If a plan sponsor can invest in an adviser or other person to provide direction for terminating or retiring employees, that would be extremely helpful,” Terry Dunne, from Millennium Trust Company, told 2018 PLANSPONSOR National Conference attendees.
Chuck Coldwell, vice president - national director, Consulting and BOLI Services at Pentegra, believes as an industry, we still have not reached the goal of getting the majority of participants in a good place for retirement—even with auto enroll and escalate.
Using “predictive analytics” means using data, technology and tools to look at what has happened to anticipate what an individual might do in the future and address potential behavior that may hurt retirement outcomes.
From what participants want, to retirement plan trends and what other plan sponsors are doing, data and research can be used to help retirement plan sponsor clients decide what is right for their own plans.
Willis Towers Watson suggests 10 updated terms associated with DC plans, with the goal of elevating the quality of all retirement planning conversations.