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Failure to Log In: The Dirty Little Secret of Many Retirement Plans

Recently, I received study results from a recordkeeper that tested some of their retirement plan communication initiatives on their own employees. Now, employees who work at a retirement plan recordkeeper are presumably more engaged than your average retirement plan participant. However, when this recordkeeper began their project, they made a surprising discovery: not only had many of their employees not recently logged in to their retirement plan account, but a significant number had NEVER logged in!

If employees of a retirement plan recordkeeper are not logging in to their own retirement plan website, then the chances are low that the average retirement plan participant has accessed their retirement plan homepage. And since most of the best material that recordkeepers utilize to engage participants is accessed via the website or mobile site, participants may not have the information they need to optimally save or invest. This could lead to employees that are not prepared to retire, an undesirable situation for all involved.

How can plan sponsors find out the percentage of their population who have accessed the retirement plan website recently, or ever?  While most recordkeeper plan outcome assessments contain reams of demographic data, surprisingly, they do not provide information on website access (perhaps because it may be cause for embarrassment).  Thus, plan sponsors must specifically request this data.  Hopefully, your plan’s data will not lead to the unpleasant realization that your recordkeeper’s state-of-the-art retirement plan website is fairly worthless to your plan, since few employees are actually seeing it!

Note: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice.

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