Investment insights from Capital Group
Many plan sponsors have halted planned upgrades, suspending actions that may have helped their participants be better prepared for retirement, according to Pensions & Investments. Although plan sponsors are still reviewing risk profiles among their current asset managers and considering plan design enhancements, few are executing on the results.
Employers seek to attract and retain talent. Assisting participants in staying on track for positive retirement outcomes may strengthen the firm’s image within your talent pool. During times of uncertainty, your workforce looks for guidance. They may feel uncertain if the company does nothing. Reassure your participants by being proactive.
How to leverage consultants to effectively collaborate with DC committees?
DC committees and consultants are finding their deliberately planned strategies to augment their retirement plans have been upended by COVID-19. But now could be the best time to take action to adjust plan designs and avoid detrimental participant behavior. For example, consider whether to change the plan's auto-escalation formula to get participants back on track.
Is your plan performing in your participants’ best interest? Are you, the plan sponsor or consultant, exercising your fiduciary responsibility and leveraging recent experience to research and implement changes and improvements that may help your workers stay on the path to financial wellness and meet their retirement savings goals? There are significant steps DC committees can take now to help employees with financial wellness and meeting their retirement goals.
1Source: Morningstar, April 17, 2020
2,3Source: Charles Schwab Self-Directed Brokerage Account Indicators, March 31, 2020
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