When employees are stressed financially, their health and productivity can both suffer. Fortunately, organizations can ease some of that stress by helping employees manage their personal finances and prepare for retirement.

401(k) Benefits

Most companies now offer their employees a 401(k) plan, which can be an important component of any retirement plan, but many employees lack the education needed to take full advantage of it. Even though a matching retirement plan can go a long way toward attracting and retaining top talent, getting employees to participate at an appropriate level can be a daunting challenge for many organizations. Employee career paths differ, depending on age, family circumstances, behavioral biases, and other factors, so one canned presentation will never apply equally to all.

Personalized Messaging

One proven approach to improving 401(k) participation is one-on-one interactive counseling sessions that are personalized to the employee’s situation. In organizations totaling over 60,000 employees, this individualized approach resulted in a 78% increase in plan participation – a truly life-changing difference! As the Director of Compensation and Benefits of one company stated,

        ”Even though participation in our 401(k) exceeded 60%, we felt that teammate appreciation for our 401(k) would improve if they were able to obtain a personal projection of the plan. When each of our teammates was able to project retirement income from the 401(k) plan and from Social Security, as part of a multimedia presentation and a projection statement, they gained a better understanding of the value of starting early, the magic of compounding, and their personal responsibility for saving.”


A Voluntary Benefit

At the end of a half-hour counseling session, after employees have been educated about the 401(k) and the importance of saving, counselors describe the advantages of a two-in-one package of life insurance with Long-Term Care (LTC) and offer them the voluntary benefit. Flexible options allow the plan to be customized to each employee’s protection needs. The life insurance protects them during the years they are saving, and the LTC protects them after retirement. Depending on employer group qualifications, a LTC benefit of up to $8,000 per month can be offered, with LTC benefits payable up to 50 months. And a benefit restoration rider is available that pays the beneficiary 100% of the death benefit — even after paying out 100% of the LTC benefit! Many employees take advantage of this extremely attractive protection plan, permitting the individualized counseling service to be provided at no cost to the employer.

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