So, what can we do?

That's the question. It's a problem that requires all of us to work together. And that "we" includes financial professionals, plan sponsors, and workers , and yes, investment providers and recordkeepers, too. Driven by our research, here are five ways we suggest getting started:

Start by listening to workers. They told us what they want to boost their savings. 70% want guaranteed lifetime income, in-plan, followed by 59% asking for managed accounts, and 44% asked for ESG (environmental/social/governance) investment options.
Break it down by generation. Tailoring services, resources, and tools by age can help. Of plan sponsors, 55% report managing the needs of four generations in their workplace. But only 20% consider worker demographics in benefit decisions. There can be a lot of opportunity there.
Expand planning offerings. There's room to grow here too. Only 32% of plan sponsors give access to a financial professional through the workplace plan, 29% offer retirement transition services, and 20% offer retirement income planning resources. Workers want this help—65% either work with a financial professional or intend to.
Focus where workers need it most. Plan sponsors say they need more education on Social Security withdrawal options, determining when to retire, how to estimate retirement healthcare costs, and how to create income from retirement savings. Education material from your plan provider or financial professional can help.
Offer financial wellness topics that matter. Workers say they need help with reducing financial stress, budgeting today, emergency savings, and paying down debt. Our experience shows us that they prefer varied communication methods—free of jargon—and want it where they are (likely digital).

This list, while short, is not an easy lift. It will take all of us working together. People deserve to live comfortably in retirement and have confidence for their future.

Instant Insights /

A disconnect between retirement offerings and worker savings -- and 5 ways we can act, now

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