KnowHow Archive

Plan Sponsor Guide Participant Guide

KnowHow: Retirement Quiz - Guide for Plan Sponsors

To Use This Material

Most retirement-plan education programs (including this one) talk about the importance of saving early, the benefits of tax-deferred savings, the need to diversify one's investments and to set goals. They also talk about the fund choices available to participants, and generally try to assist the participant in establishing his or her own risk-tolerance profile.
However, what many programs still lack is even the most rudimentary attempt to validate that participants actually have grasped the basics before sending them off to make investment decisions that could have a dramatic impact on their retirement security.
This month's "know how," through a series of seven simple questions—in a simple "quiz" format—attempts to get the participant to focus on the basics of investment choices.
The questions—and the answers—should provide an opportunity for you to help make sure participants "know how" to make the right choices for their retirement. It also can help establish realistic expectations for how different types of investments perform at different times.
Let us know how it works.
Participants may need additional help:
» Identifying which of your plan's fund options are stocks, bonds, balanced, etc.
» Understanding company stock (if that is a current option)
» Knowing which benchmarks (if any) are appropriate for your program
» Understanding the mechanics of bond fund investing