Enhancing Retirement Plan Outcomes: A Guide for Employers and Their Employees

In this episode:

00:00 – 06:23: Introduction and the Importance of Retirement Plans
06:24 – 08:33: Retirement Plan Advantages for Employees
08:34 – 15:57: How RPS Can Help Employers and Employees
15:58 – 17:52: Why Education on Retirement Savings Matters
17:53 – 20:00: Common Misconceptions on Benefits
20:01 – 22:29: Steps for Employers to Increase Participation
22:30 – 25:16: Final Tips and Closing

Employer-sponsored retirement plans play a crucial role in helping employees achieve their retirement goals. In this episode of Your Money. Your Mission., SVP Director Retirement Plan Services, Bret Almstedt and Wealth Education Coordinator, Retirement Plan Services, Sam Kolb alongside host, Kelly Mould, share valuable insights on how employers can enhance their retirement plan outcomes and ensure their workforce is retirement ready.

5 Key Takeaways

1.Retirement plan importance

Employer-sponsored retirement plans are critical for helping employees prepare for retirement. These plans provide employees with a means to save for retirement, offer tax benefits and potentially include employer contributions. By offering a robust retirement plan, employers can attract and retain top talent and demonstrate their commitment to their employees' long-term financial well-being.

2. Education and engagement 

Educating employees about their retirement plans and engaging them in the planning process is essential for improving participation and retirement readiness. Employers should provide ongoing education and engagement opportunities to help employees make informed decisions about their retirement savings. This can include guidance on investment options, tax implications and retirement planning strategies.

3. Plan review and optimization

Employers should regularly review their retirement plans with a financial professional to ensure they remain competitive and aligned with their workforce's needs. This includes assessing plan design, structuring and managing fees, as well as evaluating the level of employee participation and engagement. By regularly reviewing their plans, employers can identify areas for improvement and make necessary adjustments.

4. Maximizing employee benefits

Employees should take advantage of employer matching contributions and start saving for retirement as early as possible. By contributing to their retirement plan, employees can benefit from tax advantages, compound growth and potentially significant employer contributions. Employers can encourage employees to participate in their retirement plans by offering automatic enrollment and escalation of contribution rates.

5. Plan design and fiduciary responsibilities

Employers should consider plan design and fiduciary responsibilities when offering retirement plans. This includes selecting a suitable plan type, managing investment options and ensuring compliance with regulatory requirements. By working with experienced plan advisors and fiduciaries, employers can ensure their retirement plans are well-designed and effectively managed.

Enhancing retirement plan outcomes requires a multifaceted approach that involves both employers and employees and the help of a team of financial professionals. By understanding the importance of retirement plans, implementing effective plan designs and providing ongoing education and engagement, employers can significantly improve their workforce's retirement readiness. Employees, in turn, should take advantage of employer matching contributions and start saving early to maximize their retirement savings.