The average savings for Americans is only $12,000. Only 23% of Americans are confident that they will retire.
Source: Retirement Confidence Survey, Employee Benefit Research Institute, 2017
Strengthen Retirement Readiness
“Will my employees be able to retire?”
Many employers and HR professionals are asking themselves this question.
Retirement Planning: Good for Employees and Employers
Why is retirement readiness important? Because if your employees aren't ready to retire, they may “retire in place.” This means they stay at work for the paycheck, but lose motivation.
Employees who stay in their jobs because they can't afford to retire spend a lot of time thinking about their finances — while they're at work. Constant financial distraction affects their performance. So can a lack of interest in their jobs. All these factors hurt productivity.
67% of retirement plan participants say their employer could encourage them to save more by helping them understand how much to save.
Source: J.P. Morgan/Greenwald & Associates, 2016
Helping Employees Prepare
How can you help your employees prepare to retire when they're ready? Choose a retirement plan provider who offers a solid plan with great options. Your provider should also be ready to talk with employees about how their plan works.
Employees are more likely to reach their goals if they have help figuring out what concrete steps they need to take — and when they need to take them. A strong plan should support all employees, no matter what stage they are in their career. It should also make signing up easy, provide engaging educational materials, and offer tools built on an understanding of behavioral finance.
Retirement Readiness: What Gets in the Way?
When it's time to save for retirement, what gets in your employees' way? Their own behavior toward money can actually create roadblocks to saving. In this Financial Advisor article, Ken Waineo, The Standard's senior director of business development and operations for retirement plans, explains some common attitudes that can hamper your employees saving efforts. He also shares tips on how to help your employees move past them.
You can also read about how to boost savings by encouraging employees to use auto-escalation in an article by Ken that appeared in ThinkAdvisor.
Making Retirement Fitness Easier
The Standard offers a proven three-step retirement workout. The plan lays out steps employers can follow to make it easier for participants to save and invest.
Communicate and Educate
Learn How We Help Employers Talk to Their Employees About Retirement
When it comes to retirement, knowledge is power. With our plans, you have a variety of communication tools. These tools include multimedia campaigns, so you can make sure employees know about all their retirement options.
Explore Retirement Education Resources
Plan participants also have access to a retirement content library so they can learn more about how to save.
Multimedia Campaigns
The “Retirement on the Brain” education series covers key topics such as planning at different life stages and budgeting. The series includes videos, infographics and print materials to help employees understand why they need to save and how they can make it happen.
Tools for Every Type
Planning for retirement isn't a one-size-fits-all activity. Different people need different tools to help them think about their needs and goals. After logging in to their accounts, participants can use a variety of calculators to help them plan:
- Retirement Needs Calculator helps participates see if they're on target to achieve their goals
- Tax Contribution Paycheck Estimator calculates the effect of saving on any taxes taken from participants' paychecks
- Social Security Break-Even Calculator makes it easier for participants to figure out the best age to start receiving Social Security retirement benefits
Personalized Planning Yields Results
Our Mainspring Managed service can help you move the needle on retirement readiness. It comes with a team of investment professionals who manage each participant’s retirement account.