September 7, 2012 (PLANSPONSOR.com) – While National 401(k) Day is a good trigger to spur action from sponsors and participants to improve retirement readiness, the efforts should be ongoing.
“It is no secret participants’ retirement confidence and readiness has been shaken by the 2008-2009 economic crisis,” Chris Augelli, vice president of product marketing and business development for ADP’s Retirement Services division, told PLANSPONSOR. “Employers should be aware that this impacts their business as well; with more than two-thirds of employees not feeling confident about retirement, they may not be as productive as they could be.”
The key is meaningful education, according to Augelli. Plan sponsors should make sure they have targeted messaging. For example, Augelli said, the content ADP is making available to clients and adviser partners for 401(k) day to help employers with onsite education meetings has been broken into age-specific messages. For those in their 20s and 30s, it is about getting started, contributing enough to get match dollars and increasing contributions over time. The campaign also has messages targeted to employees in their 40s, 50s and 60s that relate to where they are on the path to retirement. Lisa Margeson, head of marketing for Corporate Markets at ING U.S. Retirement, added that plan sponsors should offer a holistic retirement readiness program that is engaging, personalized and actionable. “A holistic retirement readiness program helps employees feel confident and in control of their financial life by following a proven process to create a practical, customized approach that builds toward a comfortable and dignified retirement,” she said. “It should begin by helping the employee understand the amount of money they will need to live on in retirement and where their income is going to come from, and follows with help in determining what they need to do today to be on the right track to achieve that plan.”