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Conducting More Frequent & Effective Plan Reviews
Want to conduct more frequent, effective retirement plan reviews but don’t know what you should focus on?
Trust us, you’re not alone. Many plan sponsors state that they would like to review their plans more often. In fact, the 2016 MassMutual Retirement Plan Review study showed that in plans with advisors, 57% said they’d like help reviewing their plans semiannually, while only 44% of sponsors reported that this actually happens. Unfortunately, making sure employees are saving enough often falls to the bottom of the list during plan reviews, both for sponsors who work with an advisor (27%) and those who don’t (25%), according to MassMutual.
The primary focus should be the plan’s effectiveness and educational efforts to ensure workers are adequately prepared for retirement. Employers may face significantly increased costs for health care, disability and workers’ compensation for employees who work past the traditional target retirement age of 65-67.
Proactively making sure a retirement plan is helping your employees to retire by the time they’re eligible for full Social Security benefits can drastically reduce those costs. Any plan improvements should start with a detailed review, then consultation with knowledgeable plan experts, such as legal counsel and advisors.
Read more about it at http://tinyurl.com/MassMutualPlanReview.
