3 Ways to Stay Ahead of the Retirement Technology Curve
Every day, your employees experience online environments that exemplify speed and convenience. Consumers no longer simply prefer accessible and personalized digital experiences – they expect them. Is your credit union’s employee retirement program keeping up? Here is how you can better leverage advances in technology to take your employee retirement program to the next level.
1. Upgrade your retirement income calculator
Most retirement websites feature some type of retirement calculator, but they’re not all equally effective. If the default display emphasizes total amount saved to date, you may be missing an opportunity. Switching the default view to show the monthly retirement income the account is currently projected to generate may appear more attainable to plan participants than a lump sum, especially to younger employees.
But the switch to emphasizing monthly retirement income is just the first step. The next is to make it easier for users to understand how to adjust that amount. For example, CUNA Mutual Retirement Solutions offers its 401(k) plan participants a tool that prominently displays the projected monthly income and three main levers that can affect that amount:
- Contribution percentage
- The target percentage of current income that will be replaced by retirement assets
- The year the employee intends to retire
Adjusting any of these levers shows users in real time the effect on their projected monthly income and whether they’re on target to reach their retirement goal. Being able to analyze this level of detail boosts engagement and allows participants to feel in control of their retirement.
2. Offer a mobile app that improves access, communication and engagement
According to the Plan Sponsor Council of America (PSCA) 2019 annual survey, more than 43% of surveyed employers offer plans that use mobile technology.
If you haven’t already, work with your retirement plan provider to offer participants an app that’s specific to your retirement program. A dedicated app gives you a versatile communication channel that helps employees engage with their retirement plan anytime, anywhere. Advanced fingerprint or facial ID logins can add an extra layer of security.
3. Use actionable data insights to target messaging and measure plan success
Today’s data and analytics capabilities can give administrators important advantages, including:
- More frequent data updates that help you track the immediate and long-term effects of program changes. This informs planning strategies, such as the amount of matching funds to set aside. Historically, plan administrators have received updated data about participation rates, contribution percentages, investment allocations and retirement outcomes semi-annually. But today, this data can be updated every pay period, so you can react more quickly if necessary.
- The ability to direct messages to specific audiences and assess responses. It’s easier than ever to deliver personalized messages to your participants, then measure how your messages are received. You can even link data, such as email open rates, to changes in contribution percentages, and adjust tactics accordingly.
Keeping up with digital technology advances has become imperative. Keep your employees engaged with their retirement plan by making sure your retirement plan is up to speed.Go to main navigation