Ways Employers Can Encourage Participation in Retirement Plans
Posted on Wednesday, March 30, 2022
ShareHere are a few items worth considering to encourage employee participation in your company’s retirement plan:
Automatic Enrollment. With automatic enrollment, employees have the option to not participate, however, they have to proactively opt out.
Share The Advantages. Share charts to show differences between how pre-tax contributions and after-tax dollars are compounded.
Encourage Financial Wellness. Educate your employees about financial issues outside work such as how to budget, reduce debt and save for both short-term and long-term goals.
Employer Match. Let employees know what they are missing by not taking full advantage of the employer match.
Increase Employer Match. Increasing the match will put subtle pressure on employees to both enroll and increase contributions.
Reduce/Eliminate Waiting Period. Allow employees to get an earlier start on their retirement savings, which can help increase both their participation and overall appreciation of your company.
Custom Plan. Keep in mind that circumstances change over time. It’s recommended that you review your retirement plan design at least once every three years to make sure it still aligns with your business goals and meets the needs of your employees.
Posted in Employee Benefit Plan Audits
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