Is your company’s retirement plan helping employees save adequately for the future? Are older workers retiring in a timely manner to make way for new talent? An effective retirement plan helps employees save adequately for the future and allows older workers to retire in a timely manner to make way for new talent. The retirement plan should serve the needs of the company and its employees. If it doesn’t, it’s time for a change.
Perhaps you originally established your retirement plan to attract, retain and reward employees. Maybe you were concerned about productivity as workers delayed retirement. Or maybe you simply wanted to do the right thing and help your employees retire with confidence. Whatever the case, it’s important to review whether the retirement plan you envisioned back then is living up to your objectives today.
Here are some signs that your retirement plan could use a tuneup:
- Are certain groups (among ages, departments and salary) enrolling
at a lower rate?
- Are account balances low?
- Are participants not properly diversifying their investments?
Here, we will review the steps you can take to evaluate your plan’s performance and whether it meets your objectives. If you find that it falls short in some areas, your retirement plan advisor can help you get back on the right track. For example, if your plan has low participation within a certain group, you may need to alter your plan design. You may also need to ramp up retirement plan education and communication.