Change is difficult. And I’m not talking about the shirt I changed this morning because my wife said the buttons were holding on for dear life. No, I mean the kind of change that reinvents the very foundation we have grown accustomed to for so many years. The foundation that maybe we helped create and have used to thrive under for the better part of our careers.
We know it’s necessary. It’s the right thing to do.
Many believe we’re nearing a crossroads in the retirement services industry. Participants simply aren’t saving enough. And despite the bells and whistles each service provider is coming up with to support employee education, the reality is that if left to their own device, individuals are not making the necessary decisions to control their own retirement destiny. Read more
Nobody likes to have something taken away from them, especially kids. At least at my house, when one of my kids takes a toy from another one I always have to intervene. Of course, two minutes later the toy is laying on the floor and no one is playing with it. They have quickly moved on to something else, but there was still an emotional outburst.
You also hear a version of this from employees who are not contributing to their retirement plan. They often cite “I can’t afford to” or “I have too many other priorities” as reasons. This emotional response is a big reason why some plan sponsors are apprehensive of implementing automatic enrollment. They are afraid of the reaction/feedback they will have to deal with by employees who all of a sudden see a reduction in their paycheck. Read more