Promote your 401k Plan with Total Rewards Statements

We’ve had great success promoting our clients retirement plans with creative personalization. Recently we worked on Custom statements with a client who wanted to show what their employees were missing by not taking full advantage of the 401k match contribution.

In this case, the client’s 401k match was $1.00 for $1.00 up to the first 4% of the employee’s contribution. The figures were personalized for each employee based on their current earnings and age. There were three different scenarios…

1. For those employees contributing at least 4%, we estimated their annual employee contribution and the employer match and taking their current account balance into consideration, projected the value of of their 401k plan 10 years out and at age 65 (at 4%, 6% and 8% growth).
2. For those employees who were not participating at all, we showed how their retirement savings could grow assuming they began contributing today (and receiving matching funds) and compared it to waiting two years to begin contributions. The values were projected 10 years out and at age 65.
3. For those employees contributing less than 4%, we asked “why leave money on the table”? This illustration compared their current deferral to the proposed deferral (in this case 4%) in order to take full advantage of the match. In a side-by-side comparison of “current” to “proposed”, projected balances at age 65 were shown to be significant. We also compared the employee’s out of pocket expense for the deferral increase to the gains made in the account balance at the time of retirement.

This is a very eye-opening comparison! And it has an even greater impact given that all the figures illustrated are personalized for the employee. If you would like to discuss a similar promotion for your employees or if you would like to see samples of the scenarios, please give us a call or a quick email.