Your retirement plan is only a useful tool for helping your employees save for retirement to the extent that they actually participate in the plan. When it comes to participation in your retirement plan, the key behavioral question is not whether or not your employees will participate in the plan, but how long it takes before they are actually enrolled in the plan.
Plan design benchmarking affects many important facets of retirement savings behavior. You have a large measure of control over how quickly your employees sign up for the plan through the enrollment protocol that they adopt. You also significantly influence the fraction of salary that your employees choose to save through their choice of the default contribution rate and match threshold. Additionally, you can sway the asset allocation of your employees with the size and composition of the plan’s fund menu.
Washington Financial Group looks to assist you in customizing your plan design to maximize participant deferrals within your available budget, by combining insights from the field of behavioral finance with input from your plan’s fiduciaries. We believe that small changes over time can lead to big improvements at retirement.
We invite you to learn a little more about how we utilize plan design benchmarking with the objective of enhancing your retirement plan: