PLANADVISER - July/August 2022 - 21

plan design / participant coverage
A E
GREATER
CC SS
Adjust the plan-or craft a
new one-to cover a client's
excluded workers.
R
esearch based on the T. Rowe Price annual " Retirement
Savings and Spending Study " along with analysis
of the Census Bureau's 2021 Current Population
Survey found that about half of all workers participate in a
retirement plan of some kind. When the retirement plan is
offered by an employer, participation increases significantly,
to 88.2%.
" These findings highlight that the first and most important
step toward closing the retirement savings gap is to
expand access to retirement plans, " says Sudipto Banerjee,
vice president, retirement thought leadership with T. Rowe
Price in Baltimore.
Black and Hispanic workers significantly lag in participation
and savings compared with white workers, furthering
the notion that plan access and plan design can help to close
these gaps and encourage other positive financial behaviors,
as well. Nearly six in 10 white workers participate in
a retirement plan, compared with four in 10 Black workers
and three in 10 Hispanic workers.
Some people are capitalizing on ways to reach these
underserved markets. Finhabits Inc., in New York City, is
a fintech platform that describes itself as " by Latinos for
Latinos. " Company founder and CEO Carlos Garcia says
Finhabits launched its 401(k) plans in response to the California
state program, CalSavers, to provide employees with
access to a retirement savings plan if one is not offered by
their employer (see sidebar). He says interest in the Finhabits
401(k) plans has been steadily increasing.
The company worked with global retirement technology
provider Smart to develop the two 401(k)s, which include,
for example, automatic enrollment and automatic escalation
features and what Finhabits' website calls " a selection
of lower-cost, straightforward and diversified retirement
funds. "
" While CalSavers is great for some businesses, it's not
the best fit for everyone, " explains Jodan Ledford, CEO of
Smart, in Nashville, Tennessee. 401(k) plans allow for much
higher employee contributions, enable employers to make
matching contributions, and offer a range of tax benefits
for the business owners-unlike the CalSavers plan,
Ledford says. " The combination of [California's] mandate
and our streamlined, low-cost technology means we're
able to deliver the benefits of 401(k)s to even the smallest
of businesses, " he says.
Inclusive Plan Design
Cindy Rippel, senior director benefits and human resources
Art by Tilda Rose
planadviser.com July-August 2022 | 21
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PLANADVISER - July/August 2022

Table of Contents for the Digital Edition of PLANADVISER - July/August 2022

Balancing Act
Greater Access
Previewing Plan Features
A Different Way to Save
Next-Level Options
New Territory for Income?
Compliance for Wealth Managers
If Caught Off Guard by A Failure
Larry E. Crocker
PLANADVISER - July/August 2022 - C1
PLANADVISER - July/August 2022 - FC1
PLANADVISER - July/August 2022 - FC2
PLANADVISER - July/August 2022 - C2
PLANADVISER - July/August 2022 - 1
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PLANADVISER - July/August 2022 - 3
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PLANADVISER - July/August 2022 - 13
PLANADVISER - July/August 2022 - 14
PLANADVISER - July/August 2022 - 15
PLANADVISER - July/August 2022 - Balancing Act
PLANADVISER - July/August 2022 - 17
PLANADVISER - July/August 2022 - 18
PLANADVISER - July/August 2022 - 19
PLANADVISER - July/August 2022 - Greater Access
PLANADVISER - July/August 2022 - 21
PLANADVISER - July/August 2022 - 22
PLANADVISER - July/August 2022 - 23
PLANADVISER - July/August 2022 - Previewing Plan Features
PLANADVISER - July/August 2022 - 25
PLANADVISER - July/August 2022 - 26
PLANADVISER - July/August 2022 - 27
PLANADVISER - July/August 2022 - A Different Way to Save
PLANADVISER - July/August 2022 - 29
PLANADVISER - July/August 2022 - 30
PLANADVISER - July/August 2022 - 31
PLANADVISER - July/August 2022 - Next-Level Options
PLANADVISER - July/August 2022 - 33
PLANADVISER - July/August 2022 - 34
PLANADVISER - July/August 2022 - 35
PLANADVISER - July/August 2022 - New Territory for Income?
PLANADVISER - July/August 2022 - 37
PLANADVISER - July/August 2022 - Compliance for Wealth Managers
PLANADVISER - July/August 2022 - If Caught Off Guard by A Failure
PLANADVISER - July/August 2022 - Larry E. Crocker
PLANADVISER - July/August 2022 - Cover3
PLANADVISER - July/August 2022 - Cover4
https://www.planadviserdigital.com/planadviser/july_august_2022
https://www.planadviserdigital.com/planadviser/may_june_2022
https://www.planadviserdigital.com/planadviser/industry_leader_awards_2022
https://www.planadviserdigital.com/planadviser/march_april_2022
https://www.planadviserdigital.com/planadviser/january_february_2022
https://www.planadviserdigital.com/planadviser/november_december_2021
https://www.planadviserdigital.com/planadviser/september_october_2021
https://www.planadviserdigital.com/planadviser/july_august_2021
https://www.planadviserdigital.com/planadviser/may_june_2021
https://www.planadviserdigital.com/planadviser/march_april_2021
https://www.planadviserdigital.com/planadviser/january_february_2021
https://www.planadviserdigital.com/planadviser/november_december_2020
https://www.planadviserdigital.com/planadviser/september_october_2020
https://www.planadviserdigital.com/planadviser/july_august_2020
https://www.planadviserdigital.com/planadviser/may_june_2020
https://www.planadviserdigital.com/planadviser/march_april_2020
https://www.planadviserdigital.com/planadviser/january_february_2020
https://www.planadviserdigital.com/planadviser/november_december_2019
https://www.planadviserdigital.com/planadviser/september_october_2019
https://www.planadviserdigital.com/planadviser/july_august_2019
https://www.planadviserdigital.com/planadviser/may_june_2019
https://www.planadviserdigital.com/planadviser/march_april_2019
https://www.planadviserdigital.com/planadviser/january_february_2019
https://www.planadviserdigital.com/planadviser/november_december_2018
https://www.planadviserdigital.com/planadviser/september_october_2018
https://www.planadviserdigital.com/planadviser/july_august_2018
https://www.planadviserdigital.com/planadviser/may_june_2018
https://www.planadviserdigital.com/planadviser/march_april_2018
https://www.planadviserdigital.com/planadviser/january_february_2018
https://www.planadviserdigital.com/planadviser/november_december_2017
https://www.planadviserdigital.com/planadviser/september_october_2017
https://www.planadviserdigital.com/planadviser/july_august_2017
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