Most members of a group retirement plan won’t be raising their hands.
Over the past decade and during 100’s of group retirement plan employee seminars, we have asked employees across industries and age groups if they are confident they will be able to retire comfortably. Time after time, in a room filled with people, only one or two people will raise their hands. Surprised?
With certainty, what we know about the standard enrollment and education process is that most employees are provided with plan rules and a full list of investment options, but given little direction about retirement planning or which investments to select. That process leaves them both wondering if they’re saving enough for a comfortable and stable retirement and if they are investing wisely.
More than half of all Canadians have an employer-sponsored group retirement plan. And, when you break down that number, you find that most employer-sponsored plans offer a defined contribution retirement plan. Whether it’s a Defined Contribution Pension Plan, Group RRSP or Group RRSP/DPSP, these plans place the majority of the management on the shoulders of the employee. If you combine the responsibility of planning and management, with a lack of confidence, the problem is clear.
How can you get more of your group retirement plan members raising their hands and feeling confident about retirement?
Consider offering your employees custom-designed education modules and one-on-one planning and investment advice. With a solid understanding of your plan membership-investment behaviour and demography, we can design an effective communication and education strategy.
- Education Module I – Getting Started – helping your newer employees understand the importance of saving for retirement and how to invest their savings wisely
- Education Module II – Getting Serious – tailored to a more mature audience looking to get an in-depth understanding of investments and retirement planning.
One-on-one advising keeps retirement plans on track.
In addition to group-based education, one-on-one advising is the equivalent to a regular check-up with your doctor. For a lot of people, these advising sessions may be the first time they’re seeing if they are on track for a dream retirement or how far off course they might be. For the more mature employee or the more sophisticated investor, one-on-one advising can assist with their understanding of some of the more complex aspects of investing and the online retirement planning tools available to assist them in their selection of investments.
Let us review your retirement education plan and recommend a strategy and custom-designed program to ensure your plan members are retirement ready.