As a financial advisor, you can help retirement plan participants improve their chances of achieving a financially secure retirement by helping them calculate how much they should be saving each year through their workplace retirement plan. Simply providing a projection of their current savings as a monthly income stream in retirement can be a powerful motivator to help them save more. In one study, almost half (48%) of participants increased their retirement savings rate after seeing a projection of their estimated retirement income (5).
Mid-career participants are at an especially important point in their retirement planning path. While they still have time to make up their savings shortfall, calculators can provide the motivation needed to increase savings rates.
You may want to introduce retirement savings calculators and other planning resources to help participants explore their income replacement needs and savings gaps. The article linked below helps explain the factors plan participants should consider when calculating retirement savings needs.
Contact Benefit Trust to receive a participant handout with resources that will help you communicate retirement savings to your clients.
5 LIMRA, “More Than Half of All U.S. Workers Have Difficulty Understanding Retirement Savings in Terms of Future Monthly Income,” September 25, 2018