Still too many Americans are struggling to make ends meet
and the list of demands on their resources have made retirement planning a last
priority for many. Proper education and assistance from financial advisors can
boost participation rate 20% based upon research conducted by Business
Workplace Solutions, LLC.
Engaging participants in a direct and meaningful way about
retirement planning is absolutely critical in motivating them to take
appropriate steps to improve their personal retirement outcomes. For most
employers, it is challenging to find useful content, and then educate the
participants. The key to overcoming these barriers is leveraging the expertise
and resources of the retirement plan providers and the financial advisors.
Education should not be approached as a one-size-fits all
solution. People learn in different ways, and even different based upon
generational factors. Research from the Enterprise Council on Small Business
(ECSB) found that Generation X and Y prefer online access and interactive
tools. One great solution is to offer an online education and advice
application that can assist participants with asset allocation and give actual advice
on what to investment in. Many of these tools are what financial planners and
advisors use and charge significant fees.
To make available a system that will take the investment lineup in the
Plan and take the fiduciary responsibility for providing the advice is a huge
liability taken away from the employers.