The good news: Contributions to employer-sponsored retirement plans reached a record high this year.
The bad news: Volatile market conditions are also affecting 401k contributions, meaning that employees will be quick to put away less and/or completely halt their savings fund allocation in the very near future.
Opportunity for Retirement Plan Providers.
The recent global market volatility has your clients and prospects on edge. Be a strong and necessary provider by supplying them with tangible, engaging plan policies, that give both the comfort and the confidence that with you they can save now to ensure a prosperous, more protected future.
How to Increase Enrollment.
There’s a science behind increasing enrollment and getting your clients to care about their employee’s financial security, and it lies in three steps:
Good Plan Information.
Start with an understanding of your prospects and/or clients by designing a plan to meet the company’s specific goals. From plan information to enrollment materials, personalized forms of communication trigger a higher retention rate than the indirect text and graphics used in many provider’s mass communication materials.
2. Good Plan Information
Employees want to know that their questions are being answered before they even ask them. Fostering relevant plan information that answers the most important questions first is essential. It’s equally as important to make that information easy to digest. Aim for transparency by creating personalized, well-branded documents and forms that touch on specific themes and, again, contain only the most relevant information first.
It’s important for your clients to provide plan information regularly in order to educate and empower their employees to make confident decisions. This is why it’s important for you to promote continued education, starting with educational materials during enrollment, followed by reports that detail next steps, and a timely, consistent flow of plan updates, information and insights during the course of their plans.
Ultimately, in order to retain and/or bolster enrollment, employees must view their 401K with as much urgency as their health insurance. The steps are easy; now how are you going to put them into action?