The Albany, New York-based company said that the new Gap Analysis feature uses a participant’s current deferral rate, account balance and salary, together with estimated Social Security payments and sponsor matching contributions, to determine whether the participant’s income at retirement will be sufficient to meet a user-specified replacement percentage. The typical percentage is 80%.
If the analysis finds a disparity between what the participant needs to retire and what the participant will have based on current deferral rates, it will propose a deferral percentage that will eliminate the gap.
“Seeing that your current deferral rate will not generate sufficient retirement income, even when coupled with Social Security, is a powerful motivator to save more,” said Peter Newkirk, president of Newkirk, in a press release. “And that’s an important message that sponsors and providers alike are eager to convey.”
The company provides participant and sponsor communications for retirement plan providers and third party administrators. For more information about the Gap Analysis go to www.newkirk.com .