On Track Retirement Education is comprised of four parts:
- On Track Retirement Planning Statements, which walk employees through the major steps of retirement planning, the company states, with the goal of educating and motivating employees to take a proactive approach to retirement savings.
- On Track Estimates, which allow employees to combined income from other retirement sources (i.e. plans from former companies) in order to get the entire retirement picture.
- On Track Diagnostic Reports, for the purpose of summarizing the results of the planning statement.
- Diagnostic Debriefing, which explains the process and purpose of the On Track Retirement Education system to employees.
Aon also will include the use of its Replacement Ratio methodology in the four-part plan (See UpFront: Replacement Roulette ). The methodology applies data from the US Department of Labor’s Bureau of Labor Statistics’ Consumer Expenditure Survey (CES) and estimates how much income people need tomaintain their pre-retirement standard of living after retiring. It includes changes in age- and work-related expenditures before compared to during retirement. It also considers pre-retirement savings patterns and changes in taxes after employees retire. This methodology is used to calculate how much inflation and other economic factors will affect retirement savings (See EBRI: Don’t Forget Inflation Impact on Retirement Income ).
Aon Consulting ( www.aon.com ) is a global human capital and management consulting firm.