Administration

Improved Retirement Plan Communication Can Boost Confidence

DC plan participants are not very confident about saving enough for retirement, and providers are recognizing ways to boost website and digital communications to address this, a study finds.

By Rebecca Moore editors@plansponsor.com | December 15, 2016
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Women are less confident than men about saving enough for retirement, according to Corporate Insight’s Satisfying Today’s Retirement Plan Participant Study.

Only half (51%) of women say they are “confident” or “very confident” that they will be able to afford the lifestyle they desire, while 64% of men say the same. This trend is consistent across age groups and is especially pronounced among Baby Boomers (52% of women vs. 68% of men). Furthermore, respondents who are not “confident” or “very confident” are much more likely to be female than male, at 65%.

The study suggests improvement in communication could be key to boosting retirement savings behavior and confidence. More than three-quarters (76%) of survey respondents report that they receive communication from their plan providers once per quarter or less, Corporate Insight Senior Retirement Analyst Andrew Way tells PLANPSONSOR. Just 34% of participants are very satisfied with their provider’s website.

Corporate Insight asked retirement plan participants to rate the importance of seven major aspects of plan provider websites. Plan participants continue to prioritize account information (90%) and security (93%). Also important to a majority of participants is design, navigation and ease of use (75%); account self-service (75%); transaction capabilities (71%) and planning, advice and education (57%).

NEXT: Providers recognizing need for communication improvement

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