Experts predict the retirement services industry will significantly improve participant engagement in the United States over the next five years by using improved plan design and new technologies.
That’s according to Transamerica Retirement Solutions’ Prescience 2017: Expert Opinions on the Future of Retirement Plans survey, which measured 50 perspectives from more than 50 industry experts.
Retirement plan sponsors and advisors can expect to see a rise in innovative tools that participants need for greater control over their retirement planning,” says Stig Nybo, president of pension sales and distribution, Transamerica Retirement Solutions.
In response to the greater demand for tools and resources customized to an individual’s retirement readiness, experts predict that 59% of all retirement plan providers will offer members a personalized report that tells them how much to save in order to reach a fully funded retirement. Further, 39% will have gone as far as changing plan design in order to improve the retirement readiness of participants.
The study also shows that the share of plan sponsors that automatically enroll employees will increase to more than 55% in the next five years, up from 42%. Plan sponsors that automatically enroll members at a deferral rate of 6% of pay or better will grow to 45%, up from 29%.
Additionally, by 2017, the retirement industry will further embrace mobile applications, increasing its use of smartphone technology to enhance the member experience.
Experts predict that all providers will offer websites optimized for mobile operating systems and nearly all retirement plan providers will offer mobile apps that are more functional than those currently available. Analysts also expect that more than three in four providers will offer mobile games as learning tools for retirement planning. This enhanced technology will allow sponsors to prompt participants to take actions such as adjusting their plan contributions or investments.
Related articles: