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Motivated Employers Wanted

| December 01, 2015
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According to a recent study, only 8% of Americans are on-track to retire.[1] So, we ask, is it still possible to inspire your employees to save for retirement? 

We believe, yes, it is possible!  Retirement readiness is a journey, and it starts with engaged plan sponsors, professional retirement plan advisors, and the desire to help your employees reach towards their retirement goals!

No matter what the age or income of your employees, it’s not too late.

As a business owner, if retirement plan risk and employee unpreparedness keeps you up at night sometimes, the help of a professional retirement plan advisor can help you understand your plan management responsibilities and instill confidence.

You are a decision-maker for the most important retirement savings vehicle your employees will ever access. To assist your employees to prepare for a meaningful retirement, here are four powerful ideas: 

1. Retirement Plan Industry

83% of plan sponsors rank the importance of retirement readiness of active participants as “very important” and “quite important”.[2]  92% of American workers have favorable impressions of their 401(k) plan.[3] 

2. Auto-enroll

Companies that adopt an Auto-enrollment (Opt-Out) program experience retirement plan enrollment rates as high as 91%, whereas with Voluntary Enrollment (Opt-In) average enrollment hovers around 42%.[4] 

3. Auto Escalate

This plan feature increases the percentage of savings each year for enrolled employees.  Also, for plans that add an auto-escalate feature, approximately 65% of employees stay the course and will auto-increase their annual retirement savings.[5] 

4. QDIA

An astounding 96% of participants that are defaulted into the plan’s Qualified Default Investment Alternative (QDIA), remain invested in that account selection. Approximately, only 4% of participants will select their own investments.[6]

One of the primary reasons that plan sponsors should work with professional retirement plan advisors is to help prepare your workforce for the future.  At Atlanta Retirement Partners, we will take the time to discuss this with you, and help your employees reach towards a prepared retirement.

We thank you for reading! If you have any questions or would like more information, we look forward to speaking with you today!

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www.atlantaretirementpartners.com

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Securities and Advisory Services Offered Through LPL Financial, A Registered Investment Adviser. Member FINRA / SIPC.

This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.

 

[1] Rhee, Nari, PhD. "The Retirement Savings Crisis (2013): Is It Worse Than We Think?" National Institute on Retirement Security. June 2013.

[2] 2015 Annual Deloitte Benchmarking Survey: Ease of Use Drives Engagement in Saving for Retirement. Deloitte. 2015. http://www2.deloitte.com/content/dam/Deloitte/us/Documents/human-capital/us-hc-annual-defined-benchmarking-survey-2015.pdf

[3] “Americans’ Views on Defined Contribution Plan Saving.” Investment Company Institute. January 2014.

[4] Thornton, Nick. “Auto enroll doubles participation rates.” BenefitsPRO. January 2015. http://www.benefitspro.com/2015/01/20/auto-enroll-doubles-participation-rates

[5] “Getting Beyond Ordinary: Advances in Automatic Savings Program Design.” T. Rowe Price. February 2013. https://www2.troweprice.com/rms/rps/Marketing/Articles/AdvancesinAutomaticSavingsProgramDesign_whitepaper.pdf

[6] “Getting Beyond Ordinary: Advances in Automatic Savings Program Design.” T. Rowe Price. February 2013. https://www2.troweprice.com/rms/rps/Marketing/Articles/AdvancesinAutomaticSavingsProgramDesign_whitepaper.pdf

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