Ensuring successful participant outcomes begins with a retirement plan designed to maximize positive participant behaviors. Plan design features, including automatic features, can drive successful outcomes for participants and sponsors alike. Automatic features help participants on the path to creating an accumulation strategy for retirement income. Just as importantly, plan design is also integral to creating a path for participants to develop a decumulation strategy and plan for spending assets during retirement.
We’ve learned that plan design decisions are influential and can be a key driver in helping people achieve positive outcomes.
1. Make It Easier to Participate
Our SmartPath™ advocates plan designs that encourage strong participation rates. Strong participation begins with eligibility features that make it easy for participants to take advantage of your plan—from day one. That means allowing for immediate eligibility. Keep in mind that this does not necessitate offering a matching contribution immediately to new hires, but immediate eligibility makes it easy to start payroll deductions and get employees into the habit of saving through the plan.
continue reading »