DC Participants Have Significant Unmet Needs and Misunderstandings
CHESTER, NJ, August 20, 2010 -- Employees want a great deal of personalization in communications about their defined contribution plans. More than half have used a calculator or worksheet at least once. But 44% want to spend less than half an hour on any calculation or plan. Participants want help and providers' efforts will work best if they make it as easy as possible for participants.
Mathew Greenwald & Associates and KK & Company have teamed up again to offer a detailed national survey of participants' education and product needs and how their experience with plan providers and sponsors can be enhanced.
"The Second Annual DC Participant Experience Study once again, provides some surprising new retirement planning insights," said Mathew Greenwald, Ph.D., President of Mathew Greenwald and Associates. Plan participants want to do a better job of using their defined contribution plan to accumulate enough for retirement. Education and advice programs have to be very well designed to be effective. A carefully designed communications/education program that is personalized as much as feasible is needed. This study provides insight into which tools and communications media work best.
"Similar to last year's findings, less than half of the participants are satisfied with the support they receive from their plan sponsor regarding their retirement plan," said Kendall Kay, LLIF, President, KK & Company. "It would be useful to teach plan sponsors how to drive up their participants' satisfaction with and support of the DC plan."
This 2010 study showed that:
- 60% of Participants want more personalized and effective communications, especially using current technologies such as websites, pro-active emails, mobile, or on-demand videos;
- Almost 80% of participants are interested in pro-active analysis and messaging that recommends how they could improve their retirement plan savings;
- Over a third are interested in an investment option that would produce monthly income for life; and,
- The majority of employee's want specific retirement planning assistance.
Information was gathered through a 17-minute interview with a total of over 1,002 participants in July 2010 and 1,049 in August 2009.
Product ideas, unmet needs and possible solutions were evaluated through regression analysis.
About Mathew Greenwald & Associates
Mathew Greenwald & Associates, Inc. is full service market research Company that specializes in serving the needs of the financial services industry. We have conducted customized research for more than 200 organizations. Greenwald & Associates is a member of a Research Center, in partnership with RAND, Dartmouth College, The Wharton School, Harvard University and others, that is conducting research for the Social Security Administration to help enhance the financial literacy of Americans. For more information please go to: www.greenwaldresearch.com .
About KK & Company
KK & Company provides strategic planning, marketing, and business development for financial services and health care organizations. Creating customized solutions that deliver a unique and profitable competitive advantage, KK & Company's specialized knowledge of wealth accumulation, retirement income, wellness and employer markets help companies understand and meet their customers' needs. For over two decades, Kendall Kay has researched, tested, developed and monitored educational strategies, products and tools for over two million 401k participants at different Defined Contribution providers, as well as for many clients. For more information please go to: www.kaykayco.com
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