Retiremap Plan Sponsor Performance Report
Transcript of Retiremap Plan Sponsor Performance Report
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Prepared for Company 1For the Period Starting April 3, 2013 and ending May 13, 2013
Boulevard R 28 Second St. Suite 300 San Francisco, CA 94105
Phone: (888) 412-5837 [email protected]
Plan Sponsor Name
Launch of Company 1s Financial Wellness Program
Performance Report
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Employee Engagement
Key Usage Metrics
Of the 100 employees that were targeted for the Empower Your Finances campaign, these are the
results from the initial launch:
How Employees Accessed the Program
The majority of Company 1 employees attended the iPad workshops:
60%
2%
38%
Completed the goal setting process and received a Starter RoadmapStarted the goal setting process, but did not complete itDid not start the goal setting process
25%
75%
Attended iPad WorkshopAccessed through email activation link
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Usage Metrics by Action Taken
The following data illustrates the actual number of participants who engaged in the Empower Your
Finances campaign launch and which actions they took.
Engaged Employee DemographicsThe following is aggregate demographic information for the employees who completed the goal setting process and received
a Starter Roadmap:
Age
28-30 years old: 39.5%
31-35 years old: 42.1%
36+ years old: 18.4%
Employees who are married: 29%
Employees with one or more child: 5%
Employees that own a home: 18%
0
10
20
30
40
4038
16
615
Started the goal setting processCompleted the goal setting process and received a Starter RoadmapDecided to increase their auto-deferral rateRequested information on auto-escalationRequested to be contacted by the Vita Planning representative
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Behavior Change
Deferral Rate Changes
As a result of the Empower Your Finances program, a significant percentage of employees who
completed the goal setting process decided to increase the amount that is automatically saved
through their retirement plan by automatic paycheck deductions (auto-deferral).
The average auto-deferral increase was 6.3% of pay.
Which Engagement Approach Led to Greater Change?
The iPad workshops led to significantly more employees increasing their deferral rates. In the iPad
workshops, 50% of employees decided to increase their savings rate.
58%
42%
Particpants who decided to increase their auto- deferral rateParticpants who did not decide to increase their auto-deferral rate
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6%
94%
Decided in iPad workshopDecided with email activation link
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Deferral Rate Increase
Here is the change in participant savings behavior before and after the Empower Your Finances launch
campaign:
Employee Requests to Meet with a Plan Advisor Representative
During the iPad workshop, 30 employees had a chance to request to meet with their 401(k)
representative from the financial advisory firm. Here is the breakdown of requests.
0%
3.25%
6.5%
9.75%
13%
6%
12.3%
7.5%
Average Participant Auto-Deferral Rate Before the CampaignAverage Participant Auto-Deferral Rate After the CampaignAverage Participant Auto-Deferral Rate (Nationwide according to EBRI)
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50%
10%
40%
Requested to meet with a representative from Vita Planning, but have not met yetMet with a representative from Vita Planning after the workshopsDid not request to meet wtih a representative from Vita Planning
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Financial Goals
Employees Financial Goals by Popularity
Company 1 employees who completed the goal setting process selected the following goals:
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68% selected this goal
55% selected this goal
50% selected this goal
39% selected this goal
29% selected this goal
29% selected this goal
24% selected this goal
21% selected this goal
21% selected this goal
16% selected this goal
16% selected this goal
16% selected this goal
13% selected this goal
13% selected this goal
8% selected this goal
8% selected this goal
8% selected this goal
5% selected this goal
5% selected this goal
5% selected this goal
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Financial Wellness
Saving Rate
Company 1 employees are saving at a high rate when compared to the national average of 3.7%. On
average, Company 1 employees are savings 12.2% of household income, with a median value of
11.3%. Here is the breakdown based on rates:
Debt Free
Partly because of the smaller number of employees who own homes, the majority of employees are
debt free. For employees with debt (excluding a mortgage), the average was $10,711.
47% 53%
Debt freeSome debt
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Saving 0-5% of household paySaving 5-10% of household paySaving 10-15% of household paySaving more than 15% of household pay
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Debt Details
Company 1 employees indicated that they had debt in the following areas:
1. Credit Card Debt: 18.4% of employees
2. Student Loan: 15.8% of employees
3. Car Loan: 5.3% of employees
4. Other Debt: 0% of employees
Net Worth
Only four employees had negative net worth (they owe more than they have in savings, including their
home). There were three employees who had a net worth of more than $400,000, but for graphingpurposes, we excluded those employees to provide a more detailed chart.
28
31
34
37
40
-$25,000 $60,000 $145,000 $230,000 $315,000 $400,000
Net Worth by Age (Less than $400,000; Younger than 40)
Net Worth
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Retirement Readiness
Distribution of Employee Retirement Readiness
As a result of the new Empower Your Finances campaign, we can now track the distribution of
employees retirement readiness. This is how it broke down, by number of participants in each
readiness scoring section (100 is the most prepared and 0 is the least prepared for retirement) for the
period covered by the report:
The average employee score is 67, while the median value is 54.
0%
25%
50%
75%
100%
7.9% 6.25% 16.6%
34.2%50% 27.7%
14.3%
18.4%6.25%
16.6%
57.1%
39.5% 43.7% 38.8%28.6%
All Employees Aged 28-30 Aged 31-35 Aged 36+
Scored 25 or Less (Least Prepared for Retirement)Scored 25- Less Than 50Scored 50 - Less Than 75Scored 75 or Greater (Most Prepared for Retirement)
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How Employees Are Investing
Here is the distribution of how employees describe how they have invested their savings:
Analysis: Of those employees who are invested in All cash, on average they have a total savings of $27,700,
with a median value of $21,000. This same group invested in All cash had 13% with negative net worth, 40%
with a net worth greater between $0-15,000 and 47% with a net worth greater than $15,000.
Assumptions Used to Calculate Employee Retirement Readiness
The following assumptions were used to calculate retirement readiness:
Inflation Rate: 2.5%
Success rate of Monte Carlo simulations for non-retirement years, based on portfolio type:
75%
Replacement rate for income at retirement:
First five years of retirement: 70%
Early middle retirement: 60%
Late middle retirement: 60%
Last five years of retirement: 65%
Percentage of retirement assets that are tax deferred: 50%
Rate of return on investable assets in retirement (after tax): 5%
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All cashMostly cash and bondsHalf stocksMostly stocks
All stocks
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Employee Feedback
Results of the Employee Survey
At the conclusion of the iPad workshop, employees were given the opportunity to provide feedback on
the workshop. Seventy percent (70%) of employees took the time to respond and here is their
feedback:
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85% plan on saving more through
their retirement plan
80% feel more prepared to take the next step
to improve their financial wellness
74% felt more interested in
meeting with a financial professional
76% felt more engaged with
their retirement plan
I am definitely more willing to take the next step to improve my financial wellness. I need
more info about increasing my savings rate through my retirement plan.
- Anonymous Company 1 Employee feedback
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Engagement Activity
Educational Campaign Details
In order to engage participants, the following activities were conducted by Boulevard R to launch the
Empower Your Finances campaign:
Activity Date
Five Empower Your Finances iPad workshops to launch theprogram
April 3, 2013 from 11am-2pm
Email Campaign #1: Sent introductory email with activation linkemailed to every Company 1 employee who did not attend aworkshop
April 16, 2013 at 2:30pm PT
Email Campaign #1: Sent reminder email with activation linkemailed to every Company 1 who had not yet created an account April 19, 2013 at 10:15am PT
Areas for Improvement
Based on employee feedback forms, the launch with the iPad workshops can be improved in the
following three ways:
1. Give employees the big picture of the overall program and what will be happening after they
complete this first step of creating their account and getting their Starter Roadmap
2. For those employees who sign up for a workshop in advance, send them a reminder to bring
their provider log in information and some basic financial information (eg. approximately how
much they save per month)
3. Create a sign up form for employees to reserve a time to meet with a representative from the
financial advisor firm
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Next Steps
Launch Website
The new website for Company 1 has been created and optimized for mobile.
Start Email CampaignsStart sending monthly personal finance articles created by the Financial Planning Association. We
have to decide whether these will be emailed out to employees from Amanda or James.
Schedule the First Webinar
Decide on which topic to cover in the first webinar. Based on the popularity of the goal for Buy a
Home, we suggest launching the webinar series with a presentation on the process to prepare for
home ownership.
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