PLANSPONSOR - June/July 2021 - 7

many participants took advantage of the
liberalized loan and withdrawal provisions
of the CARES Act-Natixis saw about
three in 10 do so-which potentially, for
many of the recipients, has created a longterm
disruption in their ability to accumulate
adequate retirement savings.
" When it came to contribution rates
and tapping into savings, while much
was driven by very real circumstances,
for many people the reason was fear, "
Farrington says. " Sometimes our own
perceptions cause us to make mistakes.
We all learn, over time, that patience and
trying to avoid rash decisions can have a
positive effect. "
Missing out on the days when the
market goes up has an outsized effect on
the ability to capture long-term returns,
he points out.
" We owe it to participants to continue
that message of 'contribution rate, consistency
and time,' " he says. " And we should
tell participants not to let fear drive them
to make decisions that have a negative
impact. Understand that events change. "
Consistency Wins
The following scenarios, Beal says, show
how consistency in contributing to a
retirement plan makes a difference when
it comes to participant outcomes:
Scenario 1: " Jenny " started contributing
$300 a month at age 25. Assuming a
rate of return on investment of 6%, her
account's value when she reached 67
would be $684,453.
Scenario 2: Jenny started contributing
$300 a month at age 25 but stopped at
30. At 31, she restarted saving at the same
$300-a-month rate. When she turned 67,
her account, assuming the same 6% ROI,
would be valued at $652,377.
Scenario 3: Jenny started contributing
$300 a month at 25 but stopped at 30. At
35, she restarted saving $300 a month.
Assuming the same 6% ROI, her account's
value when she turned 67 would be
$541,655. -Rebecca Moore
SCENARIO 3 5-year break in contributions
TIDBITS
Annuity Products Rebound
Individual annuity products-excluding
traditional variable annuities and fixed-rate
deferred annuities-will recover this year due
to improving economic conditions and high
demand, with products offering protection
features gaining significant value. The market
is expected to grow by up to 30% by 2025.
Source: The Secure Retirement Institute
SOS Savings
Those with an emergency
savings account were half as
apt to tap into their retirement
funds during the pandemic
as those without, a survey
found. Low-to-moderate-income
respondents with less than $2,000
in liquid savings were twice as
apt to have taken a 401(k) loan
or hardship withdrawal due to
COVID-19 as those who had more.
Source: Commonwealth and DCIIA's Retirement Research Center
What Jenny Has Saved in Her 401(k) by Age 67
SCENARIO 1 No break in contributions
SCENARIO 2 1-year break in contributions
$541,655
$652,377
$684,453
PLANSPONSOR.COM June - July 2021 7

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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
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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
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PLANSPONSOR - June/July 2021 - The Right Provider Team
PLANSPONSOR - June/July 2021 - 33
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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
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