PLANSPONSOR - September/October 2024 - 12
COVER STORY
education for
employees
in tune with
their varied
financial needs
to ACTION
Provide
A
utomatic features are doing their job. The Vanguard Group's " How America
Saves 2024 " study found that 59% of that company's plans used automatic
enrollment at year-end 2023, up from 50% in 2019. Further, participation for
those auto-enrolled the prior year held steady at 94%. Among plans that use the feature,
69% also automatically escalated deferrals last year.
Participant engagement is also trending higher. The " 2024 Schwab 401(k)
Study, " conducted this April and May, found that only 8% of workers said they
did not know what investments were in their plan account vs. 12% in the " 2023
Schwab 401(k) Study. " Sixty-nine percent of worker respondents this year said they
know what investments to choose for their 401(k), up from 65% last year, and 92%
said they know how their account is performing.
Set It and Forget It?
Despite auto-features' growing adoption and positive results, plan sponsors still
must educate participants and encourage engagement with various financial wellness
topics, says Kelli Send, senior vice president of financial wellness services
at Francis LLC in Brookfield, Wisconsin. " The 'auto' programs in the industry
just address the retirement plan and have been wildly successful, " she says. " For
average workers, though, their money situation is much broader than just retirement.
We think engagement is important to help workers with their whole financial
world, not just the 401(k). "
Adrian Miguel, director of participant education, advice and communications
at Schwab Workplace Financial Services in Richfield, Ohio, agrees that employees
need to learn about more than the retirement plan. A new employee might need
to make contribution decisions regarding a 401(k), a health savings account, an
employee stock purchase plan and other benefits, Miguel says.
" Every individual has competing financial priorities, " he says. " The person
might be new to the workforce and thinking about student loans or building up
some emergency savings. Education can meet [him] where [he's] at and deliver much
12 PLANSPONSOR.COM September - October 2024 Art by Chris Buzelli
http://www.PLANSPONSOR.COM
PLANSPONSOR - September/October 2024
Table of Contents for the Digital Edition of PLANSPONSOR - September/October 2024
insights
Rules and regulations
Participant analysis
Upfront
Calls to Action
2024 PLANSPONSOR National Conference
The Intensity of Implementation
Frontier of the New QDIAs
The Great Debate
Time for a Welfare Fiduciary Checkup
Loper Bright Reshapes The Regulatory Landscape
Managing Stress in HR
PLANSPONSOR - September/October 2024 - C1
PLANSPONSOR - September/October 2024 - FC1
PLANSPONSOR - September/October 2024 - FC2
PLANSPONSOR - September/October 2024 - C2
PLANSPONSOR - September/October 2024 - 1
PLANSPONSOR - September/October 2024 - insights
PLANSPONSOR - September/October 2024 - 3
PLANSPONSOR - September/October 2024 - Rules and regulations
PLANSPONSOR - September/October 2024 - 5
PLANSPONSOR - September/October 2024 - 6
PLANSPONSOR - September/October 2024 - Participant analysis
PLANSPONSOR - September/October 2024 - Upfront
PLANSPONSOR - September/October 2024 - 9
PLANSPONSOR - September/October 2024 - 10
PLANSPONSOR - September/October 2024 - 11
PLANSPONSOR - September/October 2024 - Calls to Action
PLANSPONSOR - September/October 2024 - 13
PLANSPONSOR - September/October 2024 - 14
PLANSPONSOR - September/October 2024 - 15
PLANSPONSOR - September/October 2024 - 2024 PLANSPONSOR National Conference
PLANSPONSOR - September/October 2024 - 17
PLANSPONSOR - September/October 2024 - 18
PLANSPONSOR - September/October 2024 - 19
PLANSPONSOR - September/October 2024 - 20
PLANSPONSOR - September/October 2024 - 21
PLANSPONSOR - September/October 2024 - 22
PLANSPONSOR - September/October 2024 - 23
PLANSPONSOR - September/October 2024 - 24
PLANSPONSOR - September/October 2024 - 25
PLANSPONSOR - September/October 2024 - The Intensity of Implementation
PLANSPONSOR - September/October 2024 - 27
PLANSPONSOR - September/October 2024 - 28
PLANSPONSOR - September/October 2024 - 29
PLANSPONSOR - September/October 2024 - 30
PLANSPONSOR - September/October 2024 - 31
PLANSPONSOR - September/October 2024 - Frontier of the New QDIAs
PLANSPONSOR - September/October 2024 - 33
PLANSPONSOR - September/October 2024 - 34
PLANSPONSOR - September/October 2024 - 35
PLANSPONSOR - September/October 2024 - The Great Debate
PLANSPONSOR - September/October 2024 - 37
PLANSPONSOR - September/October 2024 - Time for a Welfare Fiduciary Checkup
PLANSPONSOR - September/October 2024 - Loper Bright Reshapes The Regulatory Landscape
PLANSPONSOR - September/October 2024 - Managing Stress in HR
PLANSPONSOR - September/October 2024 - C3
PLANSPONSOR - September/October 2024 - C4
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