Retirement policy proposals – whether from a state or the federal government – represent great fodder for chats… and education. They offer the compelling narrative of “pro and con” while also including important elements that help employees learn some of the fundamentals of retirement. (Photo: Shutterstock)
We've all participated in those family dinners. You know the ones I'm talking about. Everyone sits at the table. Animated conversation abounds. There's loud laughter as each member quickly tries to offer the next enthusiastic word. It's a lively time. It's a lovely time. It's a holiday time we all remember fondly.
Now contrast that to stark scene from the movie Citizen Kane where Charles Foster Kane eats breakfast with his wife in stone-cold silence. There's no engagement between the two characters. There's no passion between them. There's no longer a sustainable investment in their relationship. As a result, there is not future.
It makes sense, then, that plan sponsors are very happy when they see their employees engaged in their 401(k) (see “3 Reasons 401k Plan Sponsors are Smiling,” FiduciaryNews.com, December 11, 2018). Employees who are talking about their retirement are paying attention to it. Plan sponsors increasingly recognize the need to encourage employees to talk about their retirement and to keep them talking about it.
Oddly, one of the side effects of the Great Fiduciary Debate has been an invigorating discussion on retirement. It's easy to understand why. It was the DOL that vociferously promoted the fiduciary rule, and the DOL's jurisdiction is limited to retirement plans. Ergo, any mention of the fiduciary rule meant a mention of retirement, saving for retirement, and, ultimately, investing for retirement.
Another national policy topic that allows employees to face their own retirement is the continuing drama associated with Social Security. Will it be there when they retire? Should it be there at all? What will replace it? For many, these kinds of questions inspire people to take control of their own retirement. The best way to do this is through a retirement plan.
Meanwhile, we have a number of states also adding to the retirement dialog. Regardless of the merits (or dangers) of state-sponsored private retirement plans, it gets that table talk going. Retirement savers are wondering if this will help them, or if this will end up being another false promise like Social Security.
More likely, these plans face one of two end games. In one, since these plans are contribution plans, they'll succeed and replace corporate plans because plan sponsors see them as a way out of fiduciary liability. Alternatively, it will quickly become clear that, like the ill-fated myIRA, they don't provide the kind of added value that will justify their existence and they will die.
At the same time, the industry isn't sitting on its haunches. The rise of the robo-machines has found a home with millennials. The younger generation, raised on the ever-present hand-held device, find themselves quickly motivated by accessible content and internet-based tools. It's too early to tell if these cloud-based applications will take on the gamification characteristics of other forms of social media. But if it can keep the retirement conversation going, then that's a good sign.
So, if plan sponsors want to elevate the odds of employee engagement regarding retirement, there's a clear, low-cost, map to get there. Retirement policy proposals – whether from a state or the federal government – represent great fodder for chats… and education. They offer the compelling narrative of “pro and con” while also including important elements that help employees learn some of the fundamentals of retirement.
Mix into this another form of debate: which free phone app is the best. Now that will really start a conversation that engages. Just make sure there's no sharp utensils are the table when you start it.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Christopher Carosa
Chris Carosa has been writing a weekly article and monthly column for BenefitsPRO online and BenefitsPRO Magazine since 2011 and is a nationally recognized award-winning writer, researcher and speaker. He’s written seven books, including From Cradle to Retire: The Child IRA; Hey! What’s My Number? – How to Increase the Odds You Will Retire in Comfort; A Pizza The Action: Everything I Ever Learned About Business I Learned By Working in a Pizza Stand at the Erie County Fair; and the widely acclaimed 401(k) Fiduciary Solutions. Carosa is also Chief Contributing Editor of the authoritative trade journal FiduciaryNews.com and publisher of the Mendon-Honeoye Falls-Lima Sentinel, a weekly community newspaper he founded in 1989. Currently serving as President of the National Society of Newspaper Columnists and with more than 1,000 articles published in various publications, he appears regularly in the national media. A “parallel” entrepreneur, he actively runs a handful of businesses, including a small boutique investment adviser, providing hands-on experience for his writing. A trained astrophysicist, he also holds an MBA and has been designated a Certified Trust and Financial Advisor. Share your thoughts and story ideas with him through Facebook (https://www.facebook.com/christophercarosa/)and Twitter (https://twitter.com/ChrisCarosa).
