Better Worker Retirement Outcomes

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Why now may be the time to consider reenrollment

Today, people are living longer, with more time spent in retirement: Average U.S. life expectancy was 79 in 2015 – it will jump to 104 for those born today.1 However, many aren’t prepared. Two in five households approaching retirement have no retirement savings at all.2

For the U.S. workers who are saving for retirement, creating more ways for them to save is critical in helping to close the “retirement readiness gap” – the $4.13 trillion between what households have saved and what they might need to finance longer lives.3 Defined contribution plans play an important role in helping to close that gap for millions of people, including some of the employees in your plan.

Your employees want to retire on their own terms. The combination of age-appropriate investment choices and added savings – not just one or the other – is key to improving their potential to meet their retirement aspirations. You may wish to consider reenrollment as a way to help guide your employees toward these objectives. Additionally, reenrollment can be a useful tool that can help you bring your best thinking and recommendations to the broadest number of employees. By creating a new baseline for savings and diversification, it can help you more efficiently manage a diverse workforce into retirement.

You’ve no doubt heard about the trend toward reenrollment, and  you’ve likely thought about pursuing it for your plan. But if you’re like many plan sponsors, you’ve been wondering about the best way to do so. Raymond James has helped plan sponsors through every stage of the reenrollment process – from design and preparing for implementation to execution. With your desire to bring the best of your plan to your employees and our reenrollment experience, we can partner to help your employees close their retirement readiness gap.

1World Economic Forum, “We Will Live to 100,” 2017. 2AARP. 3Retirement Savings Shortfalls: Evidence from EBRI’s Retirement Security Projection Model®, Employee Benefit Research Institute, News from EBRI, March 12, 2015.

Closing the retirement readiness gap

Reenrollment can help reduce the $4.13-trillion gap between what households have saved and what they might need to finance longer lives.

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