29 April 2017

Education is a major obstacle to retirement savings

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 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.

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