Sample Employer Performance Report

Transcript

1. Performance 
 Report Prepared for Plan Sponsor
2. Table of Contents Employee Engagement Details on how many employees were engaged and their feedback on Retiremap. Financial Wellness Data on employees’ savings rates, financial goals and debt issues. Retirement Readiness See how employee retirement readiness compares across demographic groups. Demographic Differences Dive into the differences between employees’ goals and investing approaches. Next Steps Review of what comes next and areas for considering additional support. 2 2
3. Employee Engagement 108 Employees Engaged
 (received a personalized Starter Roadmap and custom online 
 Dashboard) Overview 97% Completion rate 24% 76% iWorkshops (76%) Online (24%) How employees engaged 3 3 42% Interested
 in meeting
 an advisor
4. Employee Engagement Profile 38% 39% 23% Baby Boomers (’46-’64): 23% Gen X (’65-’76): 39% Millennials (’77-’92): 38% Employees engaged by 
 generation 58% of engaged employees are married 54% of engaged employees own 
 a home 67 years old is the average anticipated retirement age 4 4
5. Employee Engagement Behavior Change 46% of employees 
 decided to increase 
 their paycheck 
 deferral rate 5.7% of pay was the average deferral increase 
 request 13% of employees are interested in auto- escalating their paycheck contribution 5 5
6. Employee Engagement Workshop Feedback I now feel more engaged with the 401(k) plan
 90.2% I now feel more prepared to work on my financial goals
 88.6% I now have helpful tools to reduce stress related to my personal finances
 93.2% I would recommend the workshop to a co-worker
 96.8% I plan to increase my savings rate through my retirement plan
 92.7% I am more interested in meeting with an advisor from Plan Advisor Firm
 74.1% I am more prepared to take the next step to improve my financial wellness
 96.2% This new financial wellness program is an excellent addition to the benefits package
 97.6% I consider financial education to be an important employee benefit
 100.00% 6 6
7. Financial Wellness Overview 7 7 7 12% 10% 12% 24% 42% Saving 0-5% of household pay Saving 6-10% of household pay Saving 11-15% of household pay Saving 16-20% of household pay Saving more than 20% of household pay Household
 Savings Rates 32% of engaged employees have CREDIT CARD 
 debt 28% of engaged employees have STUDENT LOAN 
 debt 41% of engaged employees have 
 CAR LOAN 
 debt
8. 8 Financial Wellness Top 5 Financial Goals Save for Retirement Eliminate Debt Invest Better Buy a Home Emergency Fund 71% of employees 43% of employees 41% of employees 36% of employees 35% of employees Other Top Goals: 31% of employees 28% of employees 21% of employees 19% of employees 17% of employees
9. 0% 25% 50% 75% 100% All Employees Millenials Gen X Baby Boomers 42% 32% 47% 41% 8% 29% 15% 19% 27% 18% 25% 22% 23% 21% 13% 18% Scored Less Than 25 (Least Prepared for Retirement) Scored 25 - 49 Scored 50 - 75 Scored 75+ (Most Prepared for Retirement) Retirement Readiness - February 2015 9 Assumptions Used to Calculate Employee Retirement Readiness The following assumptions were used to calculate retirement readiness:
 Inflation Rate: 3% Success rate of Monte Carlo simulations for non-retirement years, based on portfolio type:
 75% Replacement rate for income at retirement (only meets basic needs, not retirement goals) 
 First five years of retirement: 65%
 Early middle retirement: 55%
 Late middle retirement: 45%
 Last five years of retirement: 55% Percentage of retirement assets that are tax deferred: 50% Rate of return on investable assets in retirement (after tax): 5% 9
10. Demographic Differences Overview 10 10 38% 39% 23% Baby Boomers (’46-’64): 23% Gen X (’65-’76): 39% Millennials (’77-’92): 38% Employees engaged by 
 generation
11. Demographic Differences Millennials (’77-’92) 11 11 Save for Retirement Buy a Home Invest Better Eliminate Debt Emergency Fund 71% of employees 38% of employees 51% of employees 42% of employees 41% of employees 32 years old is the average age. 11% 7% 21% 23% 39% All cash Mostly bonds and cash Half stocks Mostly stocks All stocks How 
 Millennials 
 are investing 33% Own a
 home 28% Want to
 save more Top 5 Financial Goals
12. Demographic Differences Gen X (’65-’76) 12 12 Top 5 Financial Goals 12 12 Save for Retirement Eliminate Debt Emergency Fund Save for College Buy a Home 71% of employees 31% of employees 45% of employees 40% of employees 31% of employees 45 years old is the average age. 10% 33% 21% 12% 24% All cash Mostly bonds and cash Half stocks Mostly stocks All stocks How 
 Gen Xers 
 are investing 61% Own a
 home 47% Want to
 save more
13. Demographic Differences Baby Boomers (’46-’64) 13 13 13 13 Save for Retirement Invest Better Reduce Spending Minimize Taxes Long Term Care 82% of employees 28% of employees 64% of employees 34% of employees 33% of employees 56 years old is the average age. 9% 18% 23% 32% 18% All cash Mostly bonds and cash Half stocks Mostly stocks All stocks How 
 Baby Boomers 
 are investing 77% Own a
 home 48% Want to
 save more Top 5 Financial Goals
14. Next Steps What comes next and areas to consider additional support. 14 14 Step 1: Email campaigns We will start with targeted emails to engaged employees 
 based on the financial goals selected and issues identified. Step 2: Personal finance webinar Based on the issue that the committee feels is most
 pressing, a CFP® with Retiremap will offer a live webinar. Step 3: Evaluate addressing debt Retiremap uncovered that 49% of employees had either
 student loan or credit card debt, with 11% having both.