In fact, while 70% of plan sponsors still consider investment education one of their top communication objectives, 57% regard retirement planning as an important objective.

In addition to encouraging people to save, retirement planning helps participants assess the adequacy of their savings and determine the most effective ways for them to make their money last throughout retirement.

Most plan participants today will receive a lump sum from a defined-contribution plan, but few individuals have done the planning necessary to ensure those distributions will be adequate for retirement. Plan sponsors are ready for their providers to assume this role in helping plan participants.

The importance of retirement planning varies somewhat by plan size. Surprisingly, the smallest and the largest plans are the most interested in this communication objective. Smaller plans are the least interested in increasing participation or increasing deferrals. Larger plan sponsors understand the impact of these objectives on the overall plan design (and the ability of higher-paid participants to contribute more if these objectives are met) better than many smaller plan sponsors.

Plan providers must reassess their communication programs to effectively meet these new objectives. While most education focuses on enrollment, few providers have developed ongoing educational programs that focus on long-term, in-depth retirement planning.

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