How are the communication needs of older employees different?
Most retirement education materials focus on encouraging employees to enroll in the company’s plan and contribute as much as they can to their plan accounts. Increasing the number of younger and lower paid plan participants to help the plan meet nondiscrimination testing requirements is often one goal of these materials. Communications concentrate on plan basics: how the plan works; the advantages of pretax contributions, tax-deferred compounding, starting early, and contributing regularly; and how to invest plan contributions to reach retirement goals. Investment education stresses “growing your account.” This is important information for most plan participants. But, as employees move closer to retirement age, they need additional information about their plan distribution options and how to invest their accounts to preserve their assets. With all the statistics on the “baby boomers” not having saved enough for retirement, don’t older employees need to be encouraged to contribute, too?
