Written by Bobbi Kloss, Human Capital Management Director. Published in the Los Angeles Advertising Human Resources Professionals Monthly, October 2018.
When private employers think about financial wellness they typically center their thoughts on 401(k) plans. The conversation today though has expanded the discussion on 401(k) programs to include student loan debt and other high-impact life events that have the ability to redirect an employee’s thoughts, and finances, off of savings. These events have the potential to impact saving for today, tomorrow, or the future.
To an employer, it can appear that the focus of the majority of employees is on the financial challenges of today, not on saving for their future. This has prompted employers with an existing 401(k) plan to get involved and figure out how to solve the participation challenge. These challenges also deter other employers contemplating a 401(k), wondering if it would be worth it.
According to a ten-year trend survey from 2007―2017 by Transamerica Center for Retirement Studies, more employers are confident that their employees are saving for the future. Meanwhile, plan participation shows that 61% of employees say they are confident that they can retire comfortably versus ten years ago. Additionally, 70% of employers see their 401(k) as an important benefit for the attraction and retention of employees and 80% of employees say a 409(k) plan is an attraction for making an employment [Read More].
Bobbi Kloss is the Director of Human Capital Management Services for the Benefit Advisors Network, a national network of independent employee