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Understanding the Sum of the Parts

As a plan sponsor and fiduciary, you probably monitor your plan’s investments and track participation among your employees. But do you know if your employees are using your plan effectively? Will your employees be ready for retirement? How do you know? What can you do to impact their “retirement readiness”?

Driving results starts with understanding how a plan is used currently. A plan with very high participation may appear to be preparing employees adequately, but if they are contributing at insufficient levels, they may still fall significantly short of their retirement goals. The Retirement Planning Insights program starts by evaluating how your plan is currently being utilized. Our Retirement Readiness Report goes beyond looking at the plan as a whole, and evaluates how each one of your employees is using the plan to meet their future needs. By analyzing the plan at the individual employee level, we can identify the specific areas of plan success and plan concern that need to be addressed.

Our Retirement Readiness Report breaks down current employee plan utilization by:

  • Asset allocation
  • Participation
  • Number of funds being utilized by participants
  • Average risk of portfolios by age
  • Contribution rates by age
  • Contribution rates by income
  • Probability of reaching their retirement objective
  • Average retirement shortfall by age
  • Average retirement shortfall by income
The Readiness Report then analyzes the impact of our recommendations to each employee, including:

  • Suggested contribution rates by age
  • Suggested asset diversification impact by age
  • Revised portfolio risk assessment by age
  • Recommendations impact to retirement income by age
  • Probability of reaching retirement objective by salary
  • Probability of reaching retirement objective by age
You will receive an updated Retirement Readiness Report annually that shows the progress of employee utilization compared to the prior year. Financial Soundings provides this measure of the impact of our program so you can see how Insights, and you as the program sponsor, are positively enhancing your employees’ retirement readiness. Samples of our Retirement Readiness Report are available for your review upon request.