Help your clients tell employees a story they can relate to
As your clients’ financial professional of choice, you recognize
that retirement plans represent a great way to help their employees save
for retirement.
As such, you've taken the necessary steps to design the best
plans possible.
Ascensus has witnessed the positive results of targeted communications firsthand: Employees who chose to enroll in a plan after receiving a targeted communication deferred, on average, nearly 6% of pay.1
With
the primary responsibility for retirement planning now in the hands of
employees, getting an early start on saving for retirement is critical to helping
them reach their retirement goals. Think about incorporating a targeted
communications strategy in your clients’ plans to get employees involved sooner
and encourage them to take full advantage of their program.
However, low participation rates and contribution levels
could negatively impact employees’ retirement savings goals and can lead to
potential compliance issues.
In many instances, the fact that employees don’t
fully understand how the plan can work for them is the primary reason for low
participation.
In the past, employers provided generic retirement scenarios that assumed contribution rates, savings, and nest eggs to drive participation. It wasn't all that surprising that employees had a hard time relating to these stories.
Today, advances in technology can help your clients encourage
savings and participation among employees by customizing retirement scenarios
for each individual.
Targeted communications are a series of educational
materials designed to explain the advantages of saving for retirement through
illustrative employee scenarios. Each focuses on a specific audience, allowing
readers to gain a better understanding of a particular message.
Depending on the individual situation, these communications demonstrate
the benefits of:
- Enrolling in the plan
- Contributing enough to maximize a company match
- Increasing contribution amounts to maintain a desired lifestyle in retirement
Ascensus has witnessed the positive results of targeted communications firsthand: Employees who chose to enroll in a plan after receiving a targeted communication deferred, on average, nearly 6% of pay.1
Targeted communications are good for your clients, too.
By helping their employees save more and feel better about
their retirement planning, they can generate higher participation and ensure
the success of the plan for everyone.
In addition, these communications help fulfill your clients’
fiduciary responsibility, providing ongoing education to all employees—not just
those who are already participating in the plan.
1 As of April 2013.