401k plan sponsors feel a growing sense of responsibility for participants’ financial wellness, “and are more intent than ever on enhancing their plans to improve retirement outcomes for their participants.”
It’s the good news to come from a new data released by J.P. Morgan Asset Management, signaling an uptick in awareness of the importance of financial wellness, as least with plan sponsors.
“Plan sponsors and their organizations are transitioning from a traditional view of their DC plans—for example, as a way to attract and retain employees—to a sharper focus on achieving the ultimate retirement outcome: helping as many employees as possible reach a financially secure retirement,” Catherine Peterson, Managing Director, Global Head of Insights Programs, said in a statement.
Key themes and findings:
Focusing on retirement outcomes
The research indicates that plan sponsors’ sharper focus on participants’ retirement outcomes begins with the growing sense of responsibility they feel for their employees’ financial well-being and carries over to:
- the increasing importance they assign to outcome-oriented plan goals and success criteria, such as helping ensure participants have sufficient income in retirement
- the factors driving their plan design decisions
- their greater adherence to a philosophy focused on proactively placing participants on a solid saving and investing path