The National Association of Retirement Plan Participants (NARPP) is offering plan sponsors the opportunity to use its FELT study questionnaire internally, with their employees.
NARPP’s participant FELT (Financial Empowerment, Literacy and Trust) study examines the key drivers of engagement and savings rates of participants. Specifically, the study measures these participant metrics:
- Financial knowledge;
- Understanding of financial terms;
- Savings behavior;
- Satisfaction with and helpfulness of education program; and
- Levels of trust and confidence in their service provider.
In its first national FELT study in 2014, NARPP interviewed more than 5,000 participants, representing a wide range of demographics, employers and service providers. This study established that trust in the service provider is a key driver of participant engagement. While it is helpful to have a “big picture” view of all participants’ attitudes and behaviors, NARPP says it is equally important for plan sponsors to have specific data about their own employees.
NARPP has developed an easy, turnkey system that plan sponsors can use with their employees. The results of the study would be only for the plan sponsor and can be compared to national norms and used to measure the impact of education programs and initiatives. The study will be available for plan sponsor use in April.
“Participant-reported measures have to play a more central role in determining the effectiveness of education and engagement programs,” says Laurie Rowley of NARPP. “Without concrete data that examines all of the challenges facing participants, we can only guess at the path to improving outcomes.”