As the retirement landscape continues to evolve, defined contribution plans are increasingly becoming a major source of retirement income for many working Americans. And that means employers are challenged to continually improve plans, deliver better outcomes, and encourage greater participation.
Do these problems sound familiar?
As a plan sponsor, you also must contend with a multi-generational workforce today. Your baby boomers have different needs than millennials and Gen X. Yet every baby boomer is not equally prepared for retirement, nor is every millennial challenged by the same financial obstacles. Most employees have a commitment to today’s career, but not today’s employer. And many simply don’t have the tools or resources to make the most of their income today or their savings in retirement.
So what if you could position your defined contribution plan to deliver more — more for your employees, and more for your organization through an enhanced design and delivery model that may improve your employees' retirement incomes and optimize your outcomes?
The governance of DC plans is complex and regulatory requirements have made plan oversight challenging. Employing best practices for holistic plan management can help. Well-run programs encompass ongoing monitoring that covers a broad spectrum of services, from advisory to fully delegated solutions and may include:
Investment guidelines and performance monitoring
Vendor benchmarking and oversight
Audit and compliance support
Timely manager appointment and fund transitions
As a plan sponsor, you must address the needs of both the organization and your employees. An optimal plan design accomplishes both –—maximizing the employer spend to the benefit of the employees, particularly key segments of the workforce. This lens requires placing a priority on improving participant outcomes. Successful plan sponsors manage key levers that are within their influence to:
What can you do now to uncover opportunities?:
Conduct a needs analysis
Consider conducting a needs analysis for your employees; establishing success metrics; increasing investment diversification; and exploring financial wellness solutions.
Evaluate on a regular basis
Evaluate your DC plan design on a regular basis to ensure it stays relevant for your employees. Gather insight into employee needs through sensing and data analytics.
Review these areas
A financial wellness program can help you boost productivity and actually improve the physical health of your employees. We use data analytics to gain deep insights into employee behaviors and can help you develop a sustainable approach to financial wellness that improves financial outcomes for your employees. We encourage you to use our preferred financial wellness partners, and have a plan customized for your needs. With our Financial Wellness Index and Mercer’s Financial Courage Index, your company has the tools you need to assess your employees’ current state of financial wellness, as well as their Financial Courage. These tools will help you develop a financial wellness program within your organization for maximum positive impact.
We'd be happy to set up a free consultation or send you more information to get you started.