Remove administrative burden from employers via our workplace savings, equity and health plans
Are your employees self-starters in the retirement planning game?
Not necessarily, says a new report on the subject.
Recent research finds that an employer’s matching contribution carries the most influence in motivating their employees to start saving for retirement.
Also, according to the same retirement readiness report:
- Two-thirds (66%) of plan participants would be very likely to increase contributions if their employer increased the matching formula.
- Participants most frequently indicate they began saving for retirement because their employer offered a matching contribution (46%).
- Nearly a third (29%) began saving for retirement because they were automatically enrolled in their employer’s retirement savings plan.
What does all of this mean?
“More and more, employees are looking to their employers for guidance in retirement planning. At the same time, small to midsize businesses are finding it increasingly difficult to provide a retirement plan for their workforce, because of the administrative and compliance burden involved,” notes Brian McClennon, President and CEO of Link Investment Management.
“Link’s solutions—whether it’s workplace savings, equity or health plans—provide relief on both fronts,” adds Mr. McClennon. “For employees, Link takes the worry out of retirement investing with individualized investment portfolios. And for employers, our solutions like the defined contribution Alberta Link Pension Plan (ALPP) reduce complicated plan administration and fiduciary liability.”
With Link as plan sponsor and administrator, our solutions like the ALPP provide multiple benefits to plan sponsors:
- Reduced strain on internal resources, with Link responsible for design, investment strategy, implementation, monitoring, disclosure, communication and service provider selection and oversight.
- Reduced provider and management fees, through avenues like administrative sharing and asset pooling.
- Reduced compliance burden, with Link responsible for Income Tax Act compliance, pension legislation and plan provisions.
- Removal of governance and fiduciary responsibility, which is transferred to one centralized pension committee and established processes and procedures, with Link assuming responsibility for plan administration.
- Plan flexibility, with customizable contribution levels and structures, eligibility and earnings definition that meet employer objectives.
“And for the end user, Link’s retirement plans can ultimately yield better outcomes—through our lower fee structures; our easy-to-use digital platform; individualized investment portfolios based on their retirement objectives, risk tolerance and timeline; and automatic rebalancing,” says Mr. McClennon.
“Ultimately, that means comfort for the employee and greater agility for the employer. It’s a win-win all around.”