According to a press release, the reports examine the effectiveness of employee retirement plans, namely, whether or not sufficient savings have been accumulated to produce an annual income stream that provides “at or near” the same level of living as before retirement.
Factors such as retirement age, current balance, average number of years in retirement and a pre-determined income replacement ratio are taken into account when determining the plan’s retirement readiness. SunTrust says these results can help employers motivate employees to consider making changes to how, and likely how much, they save for retirement.
“We are confident the Retirement Readiness reports and our consultations with clients will help us develop and implement more customized plan designs, along with investment and employee education strategies, that will significantly improve a retirement plan’s outcomes for the company and its employees,” commented Brenda Seliga, Senior Vice President, Employee Benefit Solutions, SunTrust Banks, in the announcement.
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