Video: Nudge DC members in the right direction

Key takeaways for employers:

• Increasingly, plan sponsors are using behavioural economics and nudges in the administration of their plans. This represents industry best practices, and it’s a trend that’s expected to grow.
• While plan sponsors aren’t willing to assume the risk of providing a defined benefit, they are prepared to act as a guide for their employees, setting them up for retirement success.
• Plan sponsors need to determine their objectives in their plan administration. They can then determine what behavioural tactics or nudges they’ll need to reach those objectives.
• One problem is employees who make retirement plan withdrawals while they’re still working. Plan sponsors must find a way to reduce the number of withdrawals.

View more videos from the 2015 DC Plan Summit.

Also read:

• Nudge your plan members to make smarter choices
• How to improve DC communications
• Gaining momentum with auto features