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Insights based on EBRI survey results
For plan sponsors
Matt X. Smith
Managing Director — Retirement Services
Based on the results of EBRI's 2007 Retirement Confidence Survey released April 11, 2007, it appears that many plan participants lack knowledge about their retirement security.
Here are some ways you can help:
If your organization offers a defined benefit pension plan... help participants understand this benefit. It can be a valuable benefit that has been underappreciated by many. A DB plan (by definition) offers employees automatic, employer-funded retirement savings—these features are important to those uncertain about personally saving for retirement. Because of recent headlines, some participants may also be concerned about the stability or risks associated with their DB plans. Clear communication about your DB plan can help participants plan ahead and understand their benefits.
If your organization offers a defined contribution plan... design your plan to meet the needs of the many, not just the few. Based on their survey results, it's no wonder EBRI suggests the idea of automatic options. With the changes introduced by the Pension Protection Act of 2006, it's becoming easier for DC plan sponsors to automate their employees' retirement savings.
Meeting the needs of your plan's majority may lead you to:
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- Auto-enroll participants.
- Reevaluate your contribution policy.
- Choose diversified, age-appropriate default investment vehicles such as target date funds.
- Offer appropriate, diversified investment options for those who elect out of default investments.
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How can we help?
We can help you develop your investment strategy and find investment solutions tailored to your needs.
To learn more about our services for DC plans, please contact Phil:
Phil Enochs
Director, Institutional Defined Contribution Services
866-203-2153 |
To learn more about our services for DB plans, please contact Rob or Gerry:
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Please remember that all investments carry some level of risk, including the potential loss of
principal invested. They do not typically grow at an even rate of return and may experience
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USIRC3031
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DC plan sponsors contact Phil |
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DB plan sponsors contact Rob or Gerry |
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