What Financial Services Employees Want: Optimized Retirement Plans
From changing regulatory requirements to complex digital transformations, the financial services industry has adapted to overcome unique challenges. But when it comes to retaining skilled talent, financial institutions can also benefit from offering a well-designed retirement plan.
As technology, automation and data innovations advance, financial institutions must keep pace, requiring a highly skilled talent pool.
The solution? HR strategies that value employee flexibility and deliver attractive benefits. While retirement plans in the financial services industry are typically competitive, institutions can increase participation by enhancing plans with the features and tools that today's financial professionals are seeking.
If your organization's retirement plan participation is lacking, you may be falling short in three key areas:
Monitoring investment fees
Do you know what fees your retirement plan investments charge, such as 12b-1 or "sub-TA fees"? Thirty-seven percent of plan sponsors are unsure if their plan includes funds that charge 12-b1 or sub-TA fees.
Plan sponsors have a fiduciary responsibility to make sound financial decisions for their retirement plan participants — from selecting and monitoring plan investments to paying reasonable fees for investments.
Lacking employee financial wellness and education
Employees benefit from education about their retirement plan and attaining their savings goals. Yet 27% offer no financial wellness education, such as debt management, saving for long-term goals and Social Security withdrawal strategies.
Financial education programs can demonstrate your investment in your employees' financial well-being while encouraging smarter decision-making along the road to retirement.
Not doing enough to help employees reach their financial goals
Competitive retirement plans offer an employer match, a Roth contribution option, immediate eligibility and automatic features. Yet 53% don't have the option of automatic deferral increases, and 61% don't allow immediate eligibility. Helping workers understand, value and take advantage of their benefits now can boost retention and support their financial goals.
Optimize your plan, achieve your workforce goals
A retirement plan can help your organization attract and retain motivated, productive workers. An ADP retirement plan goes a step further.
- Access data and insights to keep everyone in control of saving for retirement
- Implement automatic plan features, like auto enroll and automatic deferral increases
- Provide educational experiences to help solve participant challenges
- Safeguard employee data with industry-recognized security and compliance management
Read more to see how ADP can help identify ways to optimize your current retirement plan, or design a new benefit offering to get your plan off to the strongest possible start.
Want immediate assistance? Get in touch with an ADP retirement specialist at 1-800-432-401K or visit adp.com/401k.
ADP, Inc., and its affiliates do not offer investment, tax, or legal advice to individuals. Nothing contained in this article is intended to be, nor should be construed as, particularized advice or a recommendation or suggestion that you take or not take a particular action. Questions about how laws, regulations, guidance, your plan's provisions, or services available to participants may apply to you should be directed to your plan administrator or legal, tax or financial advisor. M-478302-2024-01-10
