Moderators: Mazen Shakeel, vice-president of market development for group retirement services; and Sharon Vanderwerff, regional vice-president, western region, group retirement services, at Sun Life Financial
A growing number of people aren’t retiring until their late 60s or early 70s, in many cases because they don’t have the retirement income they need, said Shakeel. “If insufficient income is the issue, then delayed retirements may be the canary in the coal mine for DC plans. Sponsors need to understand and help members understand early whether they are on track to achieve a meaningful standard of living.”
Key takeaways:
❱ Regular retirement income projections can help members understand outcomes while there’s still time to do something about it.
❱ While matching contributions can help members save, focusing on the match may be misleading if members think that’s all they need to do to achieve a level of retirement income plan sponsors think is appropriate for them. Members need to recognize the match alone isn’t nearly enough to generate sufficient retirement income.
❱ It’s important for plan sponsors to measure what they can using the information they have, focus on actions that have an impact and identify the types of interventions that will lead to better outcomes.
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