Guiding Participants on Setting Contribution Levels

Q. What should one discuss with a participant regarding setting the level for how much to contribute to a retirement account?

A. In the RetireReady blog, Edward Dressel suggests that it is not enough to just tell a participant what percentage of their income they should be putting into their retirement account. He suggests discussing a specific contribution value and what a certain percentage will mean in actual dollars per month. Further, he advocates making suggestions regarding steps participants can take to contribute a certain level and how a particular contribution would affect take-home pay.