August 2016

Answer this riddle: what’s the one thing that will eventually happen to everyone, but generally, no one wants to discuss? Death is a subject that immediately conjures up all sorts of emotions because, let’s be honest, the absence of being IS emotional. But, death is also cause for practicality.

The financial markets have gone through some ups and downs over the last few months, and that can make sophisticated investors uneasy. It’s often worse for qualified retirement plan participants, who may not have much experience with markets and investing.

People have many reasons to avoid saving for retirement and much of it relates to psychology. Many people don’t understand or refuse to consider retirement planning. Some may fear it’s already too late, while others are simply unwilling to make the changes needed to work toward a secure retirement.

The “Great Recession” that began in 2008 left its mark on many people, affecting home values, bank balances, retirement accounts, and more. It also affected people emotionally, with some 64% of workers reporting that money is a very or somewhat significant source of stress, according to the American Psychological Association (APA).

Getting employees to participate in a retirement program like a 401(k) is always a concern for plan sponsors. They wonder how best to communicate the plan’s benefits to employees and encourage them to enroll. As it turns out, there’s a significant amount of research on the best ways to communicate with employees about retirement plans.