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Transcript of Participant Education
STRONGER
together
Strategies for success
2015 Partner Conference
Participant Education Strategies
The SequelPresented by your BPAS Team:
Suzan Huckaby, Senior Relationship Manager,Robert Malczyk, Vice President of Sales,
Thomas Sutton, Senior Trust Officer, Fiduciary Services
STRONGER
together
Strategies for success
2015 Partner Conference
Overview of the
original
2015 Partner ConferenceStronger Together
Why Educate?
2015 Partner ConferenceStronger Together
Why Educate
• Wealth Accumulation (a focus on outcomes)• Fiduciary Responsibility/404(c)• Financial/Physical Wellness – Retire with Dignity• Employer Benefits
— Retention & Recruiting
2015 Partner ConferenceStronger Together
Targeting How Employees Learn
A successful strategy incorporates how we learn into the communication plan
Visual Audio Written
2015 Partner ConferenceStronger Together
Challenges To Effective Education
• Learning Style Differences• Information Overload• Attention Spans• Complex Topics• Human Behavior
– “Doesn’t Apply To Me”• Reluctance To Make Decisions/Choices• Cost Effectiveness• Understanding Benefit Statements
2015 Partner ConferenceStronger Together
Tools to Simplify Education• Consider holistic education to improve financial
literacy• Implement Auto Plan Features• Simplify Investment Menus
— Target Date Funds— Risk Base Funds— Suggested Asset Allocation
• Advice
2015 Partner ConferenceStronger Together
Building a Successful Education Program
• Set/Create an Education Policy Statement • Targeted and Personalized• Relevant• Must be consistent, persistent, and multi-channel• Track progress toward goals• Gather feedback from participants • Establish relationships to minimize taxable
distributions at retirement
STRONGER
together
Strategies for success
2015 Partner Conference
The Sequel
2015 Partner ConferenceStronger Together
Time to Change the Conversation
Research done by Schwab in 2013 revealed a communication gap between what traditional 401(k) participant education efforts have been communicated and what this focus group said they actually wanted to hear.
Participants want 401(k) plan information that shows them real, practical value of their retirement plan without getting mired down in the details of plan features.
2015 Partner ConferenceStronger Together
Time to Change the Conversation
American Century Investments 2014 Survey asked:I wish the financial company that provides my company plan would do more to come into the workplace and educate me.
Disagree
Strongly Agree
Agree
Roughly two-thirds of the participants surveyed either strongly agreed or somewhat agreed with that statement.
2015 Partner ConferenceStronger Together
Time to Change the Conversation
Participants support
automatic enrollment at a
higher level
Suppose the company you worked for had an automatic enrollment option where 6% got taken out of your check automatically for retirement.
Is this something the company Should or Should Not do?
Over 60% of participants surveyed answered SHOULD DO
2015 Partner ConferenceStronger Together
Time to Change the Conversation
Let’s rethink 401(k) participant education better together