PLANSPONSOR - August - September 2022 - 33

PROVIDER RELATIONSHIPS | DIGITAL RESOURCES
in an appropriate location. But the sponsor
should also consider the site's ability to
prompt engagement after the participant
arrives to check the balance, Voris says.
He cites the design of Schwab's
participant portal as an example of this
approach. The page design combines
the participant's balance with retirement
income goal-achievement metrics, along
with tools to model and change the key
inputs behind the metrics. Tabs offer
education and an option to schedule a
personal consultation with a Schwab financial
coach who can help the participant
with a range of personal finance topics; a
further tab facilitates advice and managed
account sessions using third-party advice
provided through Morningstar.
Stay on Message
Kara Melber, senior analyst at Corporate
Insight in New York City, says plan sponsors
should look for customization that
can drive better retirement outcomes; this
often comes in the form of tailored and
actionable messaging, says Melber, adding
that retirement-focused calls to action
are also the most widely available type of
participant site customization. Standout
recordkeepers shape such advice for the
participants based on their portfolio data
and retirement timelines, she says. " This
advice includes investment allocation
guidance, based on age and risk tolerance,
and contribution rate recommendations,
especially when it comes to qualifying for
full employer matches. "
Suggested actions should be small,
relevant, specific and easy, the overall
process encouraging participants to make
one change at a time that reflects their
personal situation, says Megan Yost, senior
vice president and engagement strategist
with Segal in Boston. Personalized calls
to action will resonate more with participants,
she says. " It's a missed opportunity
if the call to action highlights something
they can't act on, such as encouraging
them to save more when they're already
saving at the IRS limit. "
Another way to support participants
Empower's new digital experience shows estimated retirement income, net worth,
savings, spending and debt.
and encourage them to seek further guidance
is through messaging, if the plan
sponsor provides for that, Vera says. It is
" the idea that you're not alone and there's
support available to you at any point
[where] you find yourself on this financial
journey, " he observes.
Using Pre-Populated Data
" Pre-filled, reasonable values can allow
participants to continue using a tool, even
when they don't know exactly what to enter
for certain required inputs, " Melber says,
citing retirement income projection tools'
Social Security inputs as a good example.
Some data can come from payroll and
from employee profiles on the sponsor
site; these data often contain personal and
employment information, Melber says.
Data can also come from information the
participant provides while engaging with
the site, such as when interacting with
other tools that ask for the same inputs.
Participants' personal, employment
and plan information are the most crucial
data to integrate and maintain, according to
Melber. Sharing salary and salary deferral
information is one of the most valuable
and fundamental types of integration,
but passing this information between the
sponsor's and participants' site can pose
difficulties: Not all payroll providers can
integrate digitally with all recordkeepers.
" Moreover, delays between the two
sites can produce inaccurate data, which
underscores the importance of allowing
participants to manually adjust inputs, "
she adds. " Outside of salary and deferral
data, external account and additional workplace
benefit integration are definitely
value-add features, but are not as critical. "
Firms often pre-fill the monthly
Social Security benefit amount with an
estimate based on known participant data
but also let participants adjust the figure,
omit Social Security from their calculations
or enter additional information-e.g.,
their planned claiming age-to receive a
more accurate prediction of their benefits.
Melber points to Empower's Retirement
Income Projection Tool and its ability to
accept the participant's personalized Social
Security inputs or use the pre-populated
data as an example of a tool that supports
this best practice (see graphic above).
401(k) sites and participant dashboards
have become more sophisticated,
but Voris stresses the need for sponsors
to look for design that is " evidence-based "
when talking to recordkeepers about
customization and personalization.
-Ed McCarthy
PLANSPONSOR.COM August - September 2022 33
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