PLANADVISER - July/August 2018 - 44
client communications
SPEAKING
THEIR LA
How to tailor the message for different demographics
O
ne challenge of advising or designing a defined
contribution (DC) retirement plan is that the whole
idea of " retirement " can mean different things to
different people.
According to the most recent PLANSPONSOR Participant
Survey, 42% of workers subscribe to a traditional view of
retirement-i.e., working until a certain age or until age
limits their ability to work-while approximately 33% plan
to keep working part-time. A more analytical approach to
retirement, having enough saved to achieve sustainable
financial independence, is cited 21% of the time.
These basic discrepancies can leave plan sponsor clients
unsure of how to set goals or communicate the value of
their retirement programs.
Each generation has its own set of challenges and priorities
as well. For Millennials, retirement planning considerations
may be tinged by the shadow of student loan debt
or the desire to purchase a first home or car, or the simple
need to establish financial independence and stability. For
Generation X, many are " sandwiched " between parents
and children, caring for both. Baby Boomers experience
growing concerns about converting savings to a retirement
paycheck-i.e., sequence of returns (SoR) risk and how to
optimally shift to decumulation.
Understanding the issues that resonate most among
each of the three age cohorts that make up the bulk of DC
plan participants can help advisers consider how to help
guide communications campaigns targeted at each, or even
suggest changes in plan design.
Millennials' Pressing Priorities
In the defined contribution plan industry, it is simply taken
for granted that everyone should be saving more for retirement
and that everyone should save as much as he can as
early as he can. But, according to Andrew Biggs, resident
scholar at the American Enterprise Institute in Washington,
D.C., hardheaded analysis does not always agree with this.
His uncommon message for plan sponsors and advisers is
that Millennials who choose to forego plan participation,
or to defer smaller amounts than the 10% or 15% of salary
44 | planadviser.com july-august 2018 Art by Jillian Tamaki
S
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PLANADVISER - July/August 2018
Table of Contents for the Digital Edition of PLANADVISER - July/August 2018
Speaking Their Language
Stretching the Match
Giving Them a Break
Managed Accounts' Value
Principal Transactions
Statute of Limitations
Prohibited Transaction Relief
PLANADVISER - July/August 2018 - C1
PLANADVISER - July/August 2018 - FC1
PLANADVISER - July/August 2018 - FC2
PLANADVISER - July/August 2018 - C2
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PLANADVISER - July/August 2018 - 42
PLANADVISER - July/August 2018 - 43
PLANADVISER - July/August 2018 - Speaking Their Language
PLANADVISER - July/August 2018 - 45
PLANADVISER - July/August 2018 - 46
PLANADVISER - July/August 2018 - 47
PLANADVISER - July/August 2018 - Stretching the Match
PLANADVISER - July/August 2018 - 49
PLANADVISER - July/August 2018 - Giving Them a Break
PLANADVISER - July/August 2018 - 51
PLANADVISER - July/August 2018 - Managed Accounts' Value
PLANADVISER - July/August 2018 - 53
PLANADVISER - July/August 2018 - Principal Transactions
PLANADVISER - July/August 2018 - Statute of Limitations
PLANADVISER - July/August 2018 - Prohibited Transaction Relief
PLANADVISER - July/August 2018 - C3
PLANADVISER - July/August 2018 - C4
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