There are three ways plan sponsors can motivate their employees to increase their commitment to retirement savings.

Prudential Retirement’s Turning Employees Into Lifetime Savers report recommends that American employers keep their employees engaged with their retirement savings, make participants feel less overwhelmed or intimidated, and make it easier.

Employers can help employees by showing them the benefits of saving and how that will affect their future.

“Such rewarding goals might include the satisfaction of more meaningful time with significant others, greater opportunities and freedom to pursue meaningful interests, and personal growth obtained by reaching certain savings goals,” the report states.

Plan sponsors can also try to erase the perception that retirement and the risks associated with plans aren’t complex. One recommendation is to provide personally relevant solutions that take into account members’ individual financial needs, which may motivate them to save more.

Employers can also help their workers see how important their plan is in helping them meet their retirement goals by making it easier to understand.

“Live webcasts where employees can become involved and ask questions would also help motivate them to save,” the report says. It also recommends simplifying plans and providing more customized solutions to employees.

Read more:

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

Join us on Twitter

Add a comment

Have your say on this topic! Comments that are thought to be disrespectful or offensive may be removed by our Benefits Canada admins. Thanks!

* These fields are required.
Field required
Field required
Field required