Fred Barstein with Plan Sponsor, Logan Taylor – HR Benefits Manager
Ensuring employees are well-prepared for retirement requires more than routine training – it demands a strategic commitment to ongoing education. This investment not only refines skills and acquires new strategies but also plays a pivotal role in preparing employees for life beyond the workplace. The stark reality of Americans’ increasing “unpreparedness” for retirement, as revealed in the 2023 Retirement Savings Assessment report, urges employers to reassess their training initiatives.
The statistics, based on a survey of over 3,500 individuals using Fidelity’s platforms, indicate a concerning decline in overall preparedness to a “yellow” status on the readiness stoplight. Recognizing the depth of employee questions, particularly when training falls short, underscores the urgency for employers to bridge this knowledge gap. Prioritizing ongoing training initiatives tailored to the evolving landscape of retirement planning is essential. Moreover, fostering a culture of financial literacy empowers employees to navigate their retirement journey with confidence.
A tangible success story emerges from The Plan Sponsor University (TPSU) Fiduciary Education Program, where Fred Barstein discusses with Logan, an HR Benefits Manager overseeing a workforce of about 475 employees. Logan’s implementation of retirement planning sessions for employees aged 50 and above, covering crucial aspects like Medicare, Social Security, 401k, and pension benefits, stands out as a differentiator for their company. The positive reception and the subsequent 71% increase in participation and plan changes demonstrate the effectiveness of personalized engagement. Such success stories emphasize the significance of not just training but tailored strategies in preparing employees for retirement.
Read the Full Transcript Here:
Fred Barstein:
Greetings. This is Fred Barstein, founder and CEO of TPSU and 401kTV. Just completed a program in Andover, and I am here with Logan. Welcome, Logan.
Logan Taylor:
Thank you.
Fred Barstein:
Okay if we ask you a few questions?
Logan Taylor:
Yeah, of course.
Fred Barstein:
Before we do, tell us a little bit about yourself and the size of your organization.
Logan Taylor:
Yep. So I’m Logan. I work for an employer that has about 475 employees. I work as a HR benefits manager.
Fred Barstein:
Great. So in the program today at TPSU, you talked about you brought in different experts. What kind of experts did you bring in?
Logan Taylor:
We brought in experts to do many retirement planning sessions for people who are maybe 50 plus who might need to meet with folks to understand Medicare, to understand Social Security, to understand 401k and pension benefits if they’re eligible, and get a better picture of what retirement looks like for them. So what types of expenses to expect.
Then on the benefits side, I’d remind them what we cover. Just so that they have a better picture of when they retire, what their cost is going to look like and what their life is going to look like as well.
Fred Barstein:
Did you bring actual people from the Social Security Administration?
Logan Taylor:
Yes. Yeah. So we got people from Social Security, from Medicare, and then we usually had our retirement advisor. We’d send someone as well, and then of course, myself or another HR manager to sit in and discuss the benefits with them too.
Fred Barstein:
So what was the reception from people?
Logan Taylor:
Reception, I mean, so everyone was very thankful that they had that opportunity to do that. One thing that I’ve heard at our company is that people are surprised that we do this kind of structured retirement planning, because most companies don’t do that. It’s congratulations, you’re retired, you’re on your own.
But frequently we get questions about Medicare and about Social Security. How do I start that piece? If they have a pension, how early do I start that process? So I know a number of years ago we came up with a plan to create and streamline the retirement process so that it’s hopefully as stress-free as possible.
Fred Barstein:
So it’s a big differentiator and not that hard to do, right?
Logan Taylor:
No. No, not at all. I know from an education standpoint, an employee engagement standpoint, something that we’ve also done on the retirement plan is make sure that people are fully engaged in the 401k.
So instead of just setting an auto election and then letting it sit and year after year promotion after promotion, just being capped in maybe at 5% your whole entire career. Instead of that method is having people come in during maybe open enrollment and meet with a advisor from your retirement plan.
How you get them to meet with them could be tricky in this day and age, but if you can get them to have that five minute conversation, we personally saw a 71% increase in terms of participation in changes. Just one session of maybe 75 people meeting with a retirement advisor, there were 71% of those people who made changes to their retirement plan.
Fred Barstein:
It sounds like you actually track it, so that’s good.
Logan Taylor:
Yeah, we did.
Fred Barstein:
Final question for you. TPSU, what did you learn and would you recommend it to other people?
Logan Taylor:
Yeah, I learned a lot. I mean, I think there was a lot of opportunity to network and learn what’s working for other companies, what’s not working for them. It’s good to know you’re not alone. I think TPSU gave me a good opportunity to hear from other professionals how they’re tackling things and just different strategies that I’d never thought about before. In terms of elections or education, and then just different benefits that I’ve never heard of.
Fred Barstein:
Yeah, usually you only talk to the people inside your organization.
Logan Taylor:
Exactly.
Fred Barstein:
To do that. Well, thank you for your time today, Logan. And thank you for watching 401kTV. Please stay tuned.
