In observance of the Christmas Day federal holiday, the New York Stock Exchange and Capital Group’s U.S. offices will close early on Tuesday, December 24 and will be closed on Wednesday, December 25. On December 24, the New York Stock Exchange (NYSE) will close at 1 p.m. (ET) and our service centers will close at 2 p.m. (ET)
THE TAKEAWAY
A plan sponsor has tools such as clear objectives, regular measurement and strategic adjustments, to influence participant outcomes. Each plan should develop its own set of goals, then focus on three key metrics to gauge the plan’s success: participation rate, savings rate and investment results.
Achieving a plan’s objectives requires constant measurement and continuous improvement. If the plan falls short of its initial success objectives, sponsors may want to take additional steps to make it stronger. Measure and adjust repeatedly and regularly.
Efforts such as participant education to improve retirement readiness get mixed results because they rely on participant action.
Improve participant outcomes by focusing on things plan sponsors can control.
Retirees can benefit from access to low-cost investment options and fiduciary oversight. Sponsors can benefit from the boost in plan assets, which create economies of scale.
By addressing both the saving and spending phases of retirement.
Eliminate withdrawal fees, and allow flexible withdrawal options e.g., scheduled and adhoc withdrawals.
Include liquid retirement income options.
Assess the target date fund against retiree needs.
Include benefits for retirees in plan communications.