For many companies, the work of managing a retirement plan feels complete once employees are enrolled.
But Teresa believes that’s only the starting point.
As an HR consultant who works closely with small businesses that often don’t have an internal HR department, Teresa regularly hears the questions employees bring forward about their retirement plans.
Speaking with TPSU Founder and CEO Fred Barstein following a recent TPSU program in Columbus, Ohio, Teresa said employees often assume they’re doing enough simply by contributing to their plan and receiving the employer match. Others ask a more pressing question: Do I actually have enough money to retire?
While employees frequently turn to HR for guidance, Teresa believes HR professionals don’t necessarily need to have all the answers.
Instead, their role is often to connect employees with the right resources — directing them back to the plan advisor or recordkeeper who can provide more detailed guidance around savings strategies and retirement readiness.
Where HR can make a meaningful impact, however, is by creating opportunities for education.
One idea Teresa took away from the TPSU program is bringing retirement providers onsite for employee education sessions, such as lunch-and-learn meetings. These sessions can help employees better understand their retirement benefits and encourage them to engage more actively with their savings.
For Teresa, the program also reinforced an important fiduciary concept: responsibility doesn’t end with offering a retirement plan or enrolling employees. Helping employees understand the benefit — and making sure they have access to education and resources — can play an important role in improving retirement outcomes.
Just as valuable was the peer learning experience. Hearing how other plan sponsors approach similar challenges provided practical ideas Teresa can bring back to the organizations she supports.
Read the Full Transcript Here:
Fred Barstein:
Greetings, this is Fred Barstein, CEO and Founder of The Plan Sponsor University (TPSU). I just completed a program here in Columbus, Ohio, and I’m here with Teresa. Welcome, Teresa.
Teresa:
Thank you for having me, Fred.
Fred Barstein:
Before we start, tell us about you and your firm.
Teresa:
My name is Teresa. I am the CEO and owner of a boutique HR consulting firm. We specialize in helping small business owners that don’t have an onsite HR department.
Fred Barstein:
Very good. Teresa, with the clients you have, what are the most common questions you get from them about their retirement plan?
Teresa:
The most common questions I receive are: number one — I’m already investing. Is there anything I should be doing additionally? Many feel like they’re good where they are.
Fred Barstein:
Outside of their retirement plan?
Teresa:
Outside of their retirement plan. They’re usually on autopilot, contributing around 3% and getting the company match.
The other question I hear often is: Do I have enough money to actually retire? Those are the two biggest questions I get.
Fred Barstein:
And do you have the answers to those?
Teresa:
I don’t necessarily have the answers myself, but I like to direct them back to either their recordkeeper or their plan advisor for those questions.
Fred Barstein:
Final question — what are a couple of things you learned today at TPSU, and would you recommend it?
Teresa:
I learned so much from the session today. One of the biggest takeaways for me was realizing that as a fiduciary, my responsibility doesn’t just start and stop with making sure employees are enrolled.
I could take the extra initiative to invite the recordkeeper onsite for a lunch-and-learn to help educate employees. And the peer learning was incredibly valuable as well.
Fred Barstein:
Great. Well, thanks for your time.
Teresa:
Thank you.
Fred Barstein:
And thank you for watching 401kTV. Please stay tuned.
