Building financial confidence with new 401(k) designs and other retirement planning mechanisms

Transforming with the times, approaches to retirement planning are undergoing significant change. Newly designed 401(k) options now allow a more personalized approach to employee financial wellbeing. By overlaying access to financial planners with considerations about retirement plan design, employers can also adapt new provisions to employee expectations.

Certain financial stressors are often associated with certain career stages. For the youngest generation, stressors may include funding education. Buying a home and raising children can be financially taxing for those in the middle. And as retirement approaches, older employees’ concerns often revolve around savings and the ability to manage cash flow during that life stage. Questions come up about whether they have enough to meet their needs or sustain their dreams after they leave the workforce.

Along the retirement planning continuum, a habit of strategically structured savings can ease both financial worries and other sources of stress.

Incentives that increase individual savings for retirement help prepare employees to manage financial pressures more productively. Early on, and thereafter, taking ownership for retirement planning and managing personal financial stability can guide a smoother path toward achieving that goal. And when it’s time to make the transition, the experience is likely to be more inviting than concerning, which also minimizes workforce management issues and other challenges for employers.

 

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