Serving Employees and Plan Participants in Challenging Times

Among those most attuned to retirement plans in challenging times like these are those approaching retirement. For them, retirement plan has a very double meaning—and employers and plan sponsors can play a role in addressing their concerns.  

In “Retirement Plans and Coronavirus: Take Steps to Protect your Employees,” Greg Pallone writes in the Hub International blog that while employees are “experiencing extraordinary stress” now, “employees close to a planned retirement date are feeling even greater concerns, wondering whether they can afford to retire.” And, he adds, those concerns take on added significance and legitimacy given increasing longevity and market volatility. 

Employers can take steps to help such employees—and all employees, for that matter—to not only ease their worries, but also prepare for retirement, Pallone writes. These include: 

Communicate more effectively. Pallone contends that employees are more comfortable with electronic communication now, out of necessity and because telecommuting has become so widespread. “Leverage technology to reach your members more directly than ever before,” he argues.

Town halls. Pallone suggests hosting electronic or in-person town hall meetings to provide information on the retirement plan and related services. 

Online education. Pallone suggests offering education about retirement saving and financial literacy through online platforms. 

Advocate best practices. Pallone suggests encouraging employees to use best practices in managing their retirement funds, such as reviewing risk profiles, reevaluating investments and remaining calm and rational despite the stress introduced by challenging times.

Review plan offerings. “Times of stress and uncertainty are appropriate times to review your offerings,” Pallone asserts.

Manage costs. Periods of uncertainty, Pallone argues, are times in which it can be wise to pay special attention to managing costs and making sure that one is providing valuable services.

Employees’ state of mind. Pallone considers it essential to provide employees with tools and resources to support their well-being and that will enable them to access help; in addition, he observes, that can help productivity at work. And he suggests helping those nearing retirement to think about the possibilities for their own growth and new opportunities. 

Don’t panic. Times of stress and uncertainty are not the time for making broad changes to retirement benefits, Pallone suggests, advocating “only conservative plan changes.” 

Remember the big picture. “Keeping the whole picture in mind is crucial,” writes Pallone, adding that account balance are “only one piece of the retirement puzzle” and that it is important to facilitate employees’ handling their stress and anxiety.