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| We’d Like to Profile a Plan Sponsor |
| In an article last November, we covered the idea of so-called “side-car” accounts—workers who do not yet have emergency savings will be directed to first fund a short-term savings account reserved for emergencies, before funding their retirement account. If you are a plan sponsor who offers such an account to employees or if you know a plan sponsor that offers one, and would be willing to speak to us about it, please send an email to rebecca.moore@strategic-i.com.Read more > |
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| Benefits & Administration |
| Simpler Retirement Plan Communications Make No Difference in Employee Decisions |
| IZA Institute of Labor Economics conducted a study to determine whether presenting retirement plan information in a more compact and accessible way increases participation and results in better investment decisions. In conclusion, IZA says, “the data do not support the idea that presenting optional 401(k) plan information in a simpler, more compact way will improve employees’ retirement planning choices. However, we did find that financial literacy was positively associated with better choices.”Read more > |
| Small Businesses Embracing Progressive Retirement Plan Design Features |
| The How America Saves Small Business edition focuses on trends relevant to Vanguard Retirement Plan Access (VRPA) clients, who include full-service plan fiduciaries for plans with less than $20 million in assets. In the report, Vanguard notes a significant increase in its work with small business clients—from roughly 1,400 small business plans in 2013 to nearly 8,900 in 2017. In addition to increased coverage, Vanguard reports that small business plans are broadly adopting progressive design features that can lead to improved retirement readiness of their employees.Read more > |
