During the DC Plan Summit, participants broke off into small groups to discuss the major challenges facing plan sponsors. Here are some highlights of the sessions and key takeaways for participants:
Moderator: Sharon Seifried, national vice-president, group retirement solutions corporate accounts, Manulife
Topic: Why can’t people see into the future? A closer look at near-sightedness versus far-sightedness
There’s a need to look at employees more holistically and dig deeper into the obstacles faced by plan members in the near term that prevent them from seeing further out. How important is financial wellness and what other factors have an impact on saving for retirement?
Key takeaways:
There are three obstacles to saving: plan members are unable to focus on saving for long-term goals when they have short-term financial concerns; there’s a need for instant gratification; and there’s a perception that people can’t afford to save now.
The solutions to those obstacles include automatic features and broader education that focuses on financial literacy in order to help people understand they can afford to participate in the plan. While plan sponsors don’t have an obligation to provide that broader education, many wish to support their employees to achieve more holistic financial wellness.
There’s a connection between financial health and physical health, so employees who are financially healthy will have less stress and are more likely be engaged and productive in their jobs.