PLANSPONSOR - June/July 2021 - 6

UPFRONT
The Compounding Effect-in Reverse
MANY Americans faced a financial hit
related to COVID-19; their retirement
savings may have suffered as well.
To help employees-specifically
retirement plan participants-who
were laid off or furloughed, last year's
Coronavirus Aid, Relief and Economic
Security (CARES) Act made it possible
to tap into their retirement plan savings
through increased distribution and loan
amounts if they needed the money to
make ends meet.
Fidelity Investments' " Pandemic
Impact " research, conducted last
September, found that employees were
not only affected by permanent or temporary
job loss during the pandemic but
that 5% stepped out of their jobs due to
caregiving responsibilities. Nearly half
(48%) of respondents said they or their
spouse/partner were considering leaving
work or reducing their current work
hours, due to family needs. Women were
twice as likely as men to decide to leave
work to meet caregiving responsibilities.
" The problem compounds because
women tend to live longer and will need
more to live on, " notes Wei Hu, vice president
of financial research at Edelman
Financial Engines.
Aside from the pandemic, individuals
might experience their own personal
financial crises and, in turn, stop saving
for retirement or withdraw money from
their retirement plan account.
When a crisis happens-be it a
personal loss of income or a spouse losing
a job- " we see the innocence of people
reacting to the moment, " says Ted Beal
Jr., executive vice president with Equitable
Advisors. People quickly turn to what they
can do to manage their monthly cash flow
and do not realize the impact their actions
may have, he says.
6 PLANSPONSOR.COM June - July 2021 Art by Dan Page
" It's important to show them, " Beal
says. " Plan sponsors don't always do that,
but it's important to get that message
through. "
Retirement plan professionals spend
considerable time talking about the rate
of return on investment (ROI), but,
with retirement planning, other things
often have a greater effect, observes Ed
Farrington, head of retirement and institutional
investing at Natixis Investment
Managers.
" A person's contribution rate, consistency
in making deferrals and the length
of time he contributes are of greater
significance for account balances, "
Farrington says. " So taking a break from
contributing has a tremendous impact.
Many folks were out of work so they
couldn't contribute, but some became
scared and suspended contributions. "
In addition, Farrington notes that
http://www.PLANSPONSOR.COM

PLANSPONSOR - June/July 2021

Table of Contents for the Digital Edition of PLANSPONSOR - June/July 2021

2021 Plan Sponsor of the Year Winners
2021 Recordkeeping Survey
The Right Provider Team
For the Best Collaboration
2021 PLANSPONSOR Service Stars
PLANSPONSOR - June/July 2021 - Cover1
PLANSPONSOR - June/July 2021 - Cover2
PLANSPONSOR - June/July 2021 - 1
PLANSPONSOR - June/July 2021 - 2
PLANSPONSOR - June/July 2021 - 3
PLANSPONSOR - June/July 2021 - 4
PLANSPONSOR - June/July 2021 - 5
PLANSPONSOR - June/July 2021 - 6
PLANSPONSOR - June/July 2021 - 7
PLANSPONSOR - June/July 2021 - 8
PLANSPONSOR - June/July 2021 - 9
PLANSPONSOR - June/July 2021 - 2021 Plan Sponsor of the Year Winners
PLANSPONSOR - June/July 2021 - 11
PLANSPONSOR - June/July 2021 - 12
PLANSPONSOR - June/July 2021 - 13
PLANSPONSOR - June/July 2021 - 14
PLANSPONSOR - June/July 2021 - 15
PLANSPONSOR - June/July 2021 - 16
PLANSPONSOR - June/July 2021 - 17
PLANSPONSOR - June/July 2021 - 18
PLANSPONSOR - June/July 2021 - 19
PLANSPONSOR - June/July 2021 - 20
PLANSPONSOR - June/July 2021 - 21
PLANSPONSOR - June/July 2021 - 2021 Recordkeeping Survey
PLANSPONSOR - June/July 2021 - 23
PLANSPONSOR - June/July 2021 - 24
PLANSPONSOR - June/July 2021 - 25
PLANSPONSOR - June/July 2021 - 26
PLANSPONSOR - June/July 2021 - 27
PLANSPONSOR - June/July 2021 - 28
PLANSPONSOR - June/July 2021 - 29
PLANSPONSOR - June/July 2021 - 30
PLANSPONSOR - June/July 2021 - 31
PLANSPONSOR - June/July 2021 - The Right Provider Team
PLANSPONSOR - June/July 2021 - 33
PLANSPONSOR - June/July 2021 - 34
PLANSPONSOR - June/July 2021 - 35
PLANSPONSOR - June/July 2021 - For the Best Collaboration
PLANSPONSOR - June/July 2021 - 37
PLANSPONSOR - June/July 2021 - 38
PLANSPONSOR - June/July 2021 - 2021 PLANSPONSOR Service Stars
PLANSPONSOR - June/July 2021 - 40
PLANSPONSOR - June/July 2021 - Cover3
PLANSPONSOR - June/July 2021 - Cover4
https://www.plansponsordigital.com/plansponsor/august_september_2021
https://www.plansponsordigital.com/plansponsor/june_july_2021
https://www.plansponsordigital.com/plansponsor/april-may_2021
https://www.plansponsordigital.com/plansponsor/february-march_2021
https://www.plansponsordigital.com/plansponsor/december-january_2021
https://www.plansponsordigital.com/plansponsor/october-november_2020
https://www.plansponsordigital.com/plansponsor/august-september_2020
https://www.plansponsordigital.com/plansponsor/june-july_2020
https://www.plansponsordigital.com/plansponsor/april-may_2020
https://www.plansponsordigital.com/plansponsor/february-march_2020
https://www.plansponsordigital.com/plansponsor/december-january_2020
https://www.plansponsordigital.com/plansponsor/october-november_2019
https://www.plansponsordigital.com/plansponsor/august-september_2019
https://www.plansponsordigital.com/plansponsor/june-july_2019
https://www.plansponsordigital.com/plansponsor/april-may_2019
https://www.plansponsordigital.com/plansponsor/february-march_2019
https://www.plansponsordigital.com/plansponsor/december_2018-january_2019
https://www.plansponsordigital.com/plansponsor/october-november_2018
https://www.plansponsordigital.com/plansponsor/august-september_2018
https://www.plansponsordigital.com/plansponsor/june-july_2018
https://www.plansponsordigital.com/plansponsor/april-may_2018
https://www.plansponsordigital.com/plansponsor/february-march_2018
https://www.plansponsordigital.com/plansponsor/december_2017-january_2018
https://www.plansponsordigital.com/plansponsor/november_december_2017
https://www.plansponsordigital.com/plansponsor/october_2017
https://www.plansponsordigital.com/plansponsor/september_2017
https://www.nxtbookmedia.com