Resolution season is upon us. January through March are the peak motivation months. That special time of the year when people are eager to make positive strides toward physical, financial, professional, or personal goals. On average, 42% of Americans make money-related resolutions. However, in less than 6 months, half of the once dedicated forget about their goals.1 But, as we all know, it takes longer than 6 months to reach a meaningful savings goal.
So, how can you, as a plan sponsor, use the resolution momentum to inspire your employees to save for retirement? This article will discuss holistic ways to promote financial wellness among your employees as well as plan design tips aimed at increasing participation and savings rates.
Employee Savings Goals
We’ve all heard the saying, “if you don’t know where you’re going, any road will get you there.” However, without a financial goal, many are left unprepared and money has a way of slipping away when there is no clear savings path.
As a retirement plan advisor, my job would be so much easier if every one of your employees was focused on saving for retirement; but the reality is, if they are financially stressed, retirement is the last thing on their minds. Depending on the age and financial situation of your workforce, top concerns may range from meeting monthly expenses, to paying off debt or saving for college, to caring for aging parents. It’s important to understand that saving is a journey and even though each of your employees may be in a different spot, however, the act of saving needs to be constant.