Three 401(k) Conversations Your Employees Can’t Afford to Skip

As retirement plan advisors, our goal is twofold: help your employees make informed decisions that improve their ability to retire securely, while also helping reduce the burden on your HR team.

We have found that customized communication campaigns targeted to specific participants can be far more effective than broad, one-size-fits-all communications. Your plan’s recordkeeper often has valuable data that can help identify employees who may benefit from a specific conversation. We can then turn that information into a personalized communication—often with a specific action item and a person they can contact for assistance.

Here are three communication campaigns that can make a meaningful difference for your participants:

1. Are Your Employees Maximizing the Employer Match?

Identify participants who are contributing to the plan but not enough to receive the full employer match. A personalized communication can show employees what they may be leaving on the table and encourage them to increase their contribution.

2. Are Your Employees Invested Appropriately?

Many recordkeepers provide glide-path and investment data that can help identify participants who may be invested too aggressively —or too conservatively—for their circumstances. A customized letter or email can encourage these participants to review their investment strategy and provide a specific advisor contact for assistance.

3. Do Your Employees Have Updated Beneficiary Designations?

Your recordkeeper can identify participants who do not have a beneficiary designation on file. While the plan document provides a default method for distributing benefits when no beneficiary is designated, missing or outdated designations can create additional work for HR and unnecessary stress for a participant’s family.

And consider the difficult situation of a surviving spouse discovering that an ex-spouse is still listed as the beneficiary. A simple, targeted communication can prompt employees to review and update this important information.

Let Us Help Make Your Plan More Effective

Participant communication doesn’t have to mean more work for HR. By combining plan data with personalized outreach, your retirement plan advisor can help identify opportunities, engage the right employees, and encourage meaningful action. The result is a more effective retirement benefit for your employees—and less work for your HR team.

If you would like to discuss how customized communication campaigns could work for your plan, please reach out to Linda Cahill at Enza Financial (lcahill@enzafinancial.com)  We would welcome the opportunity to discuss ideas specific to your organization and your employees.

File #5921712