Monday, March 21, 2016

Retirement Readiness: Where do you need to be?


In the Lincoln Financial Group study, You are here: Understanding financial wellness, retirement readiness and plan health, plan providers agree that retirement readiness is unique to each individual. A single, accurate income replacement rate does not completely define retirement readiness. Yet, replacement rate is the one measure that seems to be gaining momentum among plan sponsors. Whether plan participants need between 70% and 85% of pre-retirement income, or whether they plan to retire at age 62, 65, 67 or older, plan sponsors are unanimous in the belief that translating assets to potential income is critical.

Take action on retirement readiness
  1. Work with your recordkeeper, plan advisors and consultants to generate greater employee engagement, and seek an approach that makes it easy for participants to take action.
  2. Ask for employee communications to demonstrate the benefits and impacts of measured, realistic, small steps and to promote content that’s neither simplistic nor condescending.
  3. Encourage employee interaction with retirement planning tools and automated features.
  4. Ask participants to provide key data during open enrollment, when they’re already thinking about their benefits.
  5. Use your plan health reporting to monitor the plan design choices impacting retirement readiness and to identify employee groups who may need more help to get on track to meet their retirement savings goals.

To learn more about this research or to begin developing your organization’s action plan toward optimal plan health, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.