Presented By: John Friar, Financial
Consultant/Director of Corporate Retirement Plans
for Hausmann-Johnson Bauch Financial
401(k) Communication & Enrollment Strategies
Are we just yelling or actually getting results?
LET’S START WITH ENROLLMENT
What are the 3 questions
every participant has to
answer at the time they
enroll into their 401K?
Who is there to answer
WHAT QUESTIONS DOES A PARTICIPANT HAVE TO
ANSWER AT ENROLLMENT?
1. Should I participate or not?
2. How much should I participate in the plan?
3. What investment options should I choose?
These choices can lead to “Auto-Grounded”
• Make participation easy
• Establish the initial savings
• Implement Future
Enrollment (Re-enrollment)Action 3
Behavioral Finance Actions for Enrollment
• KEEP IT SIMPLE (KIS)Action 4
• Give them someone to talk toAction 5
• Talk to your advisor to see if
these options make sense for
Behavioral Finance Actions for Enrollment cont…
ADEQUATE SAVINGS LEVELS
PUT IT ON AUTO
Source: The Principal Financial Group. Data based on a combination of 42,806 participants opting out of Automatic Enrollment or Automatic
Increase as of April 25, 2013, and 65,662 opting in to Principal Step Ahead Retirement OptionSM as of April 31, 2013.
It’s a Changing World in Employee
What used to be
may no longer
Rethinking Retirement Plan Communication
“A successful retirement communications program
requires more two way communication along with
strategies that help participants envision what
retirement will really look like for them personally.”
Engage and Empower Through Communication
•Making sure your
provider has the
technology to provide
this at a reasonable fee
(smart phones, tablets,
targeted at age
segments (Boomers vs.
Gen Xers vs. Millennials
One-on-One Meetings Still Work
RESULTS GENERATED BY 1:1 MEETINGS
• 98% agree it increased
employee understanding of
1 Based on data from Retirement and Investor
Finance, the Principal Financial Group, December
2 Individual Investor Reporting, the Principal
Financial Group, January-December 2013
3 Results of the Principal Financial Group Retire
Secure Participant Survey , December 2013
• Over 58,500 1:1 meetings held; and 40,800 actions
taken (new participation, increased deferral,
automatic increase election) in 20132
• Participation is 23% higher and Average Deferral
is 15% higher when 1:1 meetings are offered
• More than 96% of participants responded that
they were satisfied with the 1:1 meetings in 20133
Employee / Participant Communication and Education Services
•Identify organizational goals and measures, and establish written action plan
•Identify proper tools including distribution media, non-traditional options and vendor
•Develop an implementation plan including group and individual meetings, and organization
•Ongoing reviews and modifications of written service agreement
•Determine if participant outcomes are meeting plan objectives
5 WAYS TO HELP WITH BETTER COMMUNICATION
SUCCESSFUL RETIREMENT PLAN
1. Consider “success” as it relates to your plan participants and
the role you play in impacting the plan’s success.
2. Work with your financial professional to evaluate your plan
and create a strategy.
3. Encourage participants to meet with a financial professional
to keep on track.
SO HOW DOES ALL THIS HELP
Communication Help employees achieve retirement goals
Opportunity for orderly exit
More engaged, productive employees
Decreased health and benefit expenses
For More Information Contact:
Financial Consultant/Director of Corporate Retirement Plans