According to recent studies, it is more important than ever for plan sponsors to improve communications with their employees due to the continued retirement crunch for all generations currently in the workforce. Communication in recent years has become more complex due to increased compliance requirements; additionally, communication methods may not be the same for Baby Boomers, Generation X and Millennials. However, if done effectively, retirement communications can not only increase participation within the plan, but can also decrease the cost to employers.
There are several emerging communication trends to help employers deliver more personalized, relative and interactive communications to plan participants. Life-stage communication programs targeted by age segments, known as segmentations, will be particularly critical as Baby Boomers retire and Generation X and Millennials take the reins. Channel optimization will focus on all available means of communications, including social media and more integrated use of digital communications. Utilization of metrics, particularly retirement outcomes, should be delivered at a cost that is reasonable, maintainable and competitive. Retirement plan providers and regulators pay particular attention to plan outcomes as the primary metric of plan success.
The key to all communications is to review and evaluate all communication efforts to ensure plan sponsors are providing timely, cost-effective information to plan participants.
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