ADP Retirement Services has launched an analytics-driven dashboard to help retirement plan advisers and sponsors assess how effective a plan is.
“Across the board, it takes into account participant features as well as plan-level features,” Kristin Andreski, senior vice president and general manager, retirement services, at ADP, tells PLANSPONSOR. “At the participant level, it looks at participation rates, deferral rates and retirement readiness based on age and account balance. At the plan level, the factors are plan design and utilization of particular features such as auto-enrollment, Roth, loans and withdrawals.”
ADP’s proprietary plan health scoring methodology then assigns points to particular plan metrics, such as participation, retirement readiness, diversification of investments and leakage, Andreski says.
“The key to it is participants’ retirement readiness,” she says. “The intent of the dashboard is to let plan sponsors and advisers know how well a plan is performing on an absolute as well as a relative basis compared to benchmarks of plans of similar sizes and industries. It highlights a plan’s strengths, points out opportunities to make improvements and enables sponsors to take action within the application to make those changes.
“Based on research we commissioned to better understand employee retirement preparations and outlook in January, retirement readiness remains a significant challenge, with nearly half of employees saving less than $5,000 annually. With this offering, we seek to provide our customers with a holistic solution that helps plan sponsors be more proactive and strategic.”
She adds that what is unique about this plan health dashboard is that it uses real-time data.