Communicating Retirement Plan Value to Your Employees: Actionable Strategies for Plan Sponsor and HR Teams

As a business owner, retirement plan sponsor, or member of a human resource team, one of your key responsibilities is to effectively communicate the value of the retirement plan to your current and potential employees. Providing clear and compelling information about the benefits of participating in the plan can help employees understand its importance and make informed decisions about their financial future. The good news is that you don't have to do it alone, by working with your specialized Retirement Plan Advisor, together you can make light of an important task.

Here are some actionable strategies to enhance communication and highlight the value of your retirement plan:

 1. Tailored Messaging

 Recognize that different employees have varying levels of understanding and interest in retirement planning. Work closely with your Retirement Plan Advisor & other service vendors to tailor your communication messages to meet the diverse needs of your workforce. Utilize their expertise to craft language and examples that resonate with employees at different stages of their careers and with varying levels of financial literacy.

 2. Education and Resources

 Leverage the knowledge and resources of your Retirement Plan Advisor to offer educational sessions and materials to help employees better understand the features and benefits of the retirement plan. Collaborate with your advisor to host workshops, webinars, or lunch-and-learn sessions focused on topics such as how the plan works, investment options, contribution limits, and retirement readiness. Provide access to online tools, calculators, and educational materials recommended by your recordkeeping partner to enable employees to make informed decisions about their retirement savings.

 3. Personalized Guidance

 Tap into the expertise of your Retirement Plan Advisor to provide personalized guidance to employees seeking assistance with retirement planning. Encourage employees to schedule one-on-one meetings with your advisor to address individual questions and concerns. Your advisor can offer personalized retirement planning strategies based on each employee's unique financial goals and circumstances, helping them make informed decisions about their retirement savings.

4. Regular Communication

Collaborate with your Retirement Plan Advisor to maintain regular communication with employees about the retirement plan. Work together to use a variety of channels, including emails, intranet portals, written and video libraries, webinars and employee meetings, to keep employees informed about plan updates, changes, and opportunities. Your advisor can provide valuable insights into effective communication tactics and help ensure that messaging resonates with employees.

5. Highlighting Employer Contributions

Work together to clearly communicate the employer match or contribution formula and explain how it enhances employees' retirement savings. Your advisor can provide guidance on how to effectively highlight employer contributions to motivate employees to maximize their own contributions and take full advantage of the employer match.

 6. Addressing Common Concerns

 Collaborate with your Retirement Plan Advisor to address common concerns and misconceptions about retirement planning. Work together to provide information and resources to help employees overcome barriers to participation, such as concerns about affordability, investment risk, or eligibility requirements. Your advisor can offer valuable insights and recommendations for addressing these concerns proactively, encouraging more employees to enroll in the plan and increase overall participation rates.

 7. Feedback and Evaluation

 Engage with your Retirement Plan Advisor to seek feedback from employees about their experiences with the retirement plan communication efforts. Collaborate with your advisor to conduct surveys or focus groups to gather input on the effectiveness of communication strategies and identify areas for improvement. Utilize your advisor's expertise to analyze employee feedback and refine communication tactics to ensure that messaging resonates with employees.

Effective communication is essential for helping employees understand the value of their retirement plan and encouraging active participation. By collaborating with a Retirement Plan Advisor who is strong in crafting & evaluating communication strategies for working with employees and implementing these actionable strategies, retirement plan sponsors, HR teams can enhance communication efforts and empower employees to take control of their financial futures.

 If you're looking for a Retirement Plan Advisor to help you start or manage your retirement plan, email us today, Christina.Tunison@lpl.com.

This information is not intended as authoritative guidance or tax or legal advice. You should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.

#551494 March2024