HR Exec: Reality Check (Make it Simple)
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David Hatter is featured in this Human Resources Executive article with a big focus on removing obstacles to investing in a defined contribution plan. Hatter says:
“If they have to go online, read a book, fill out a form, sign a form, make a phone call or wait on something, each one of those things is a hurdle,” says Hatter.“If you design the process so the easiest thing for them to do is to save the right amount in the right mix of investments, it will be a huge relief for them.”
403(b) plans could take a hint from this advice. Removing barriers to getting school employees into defined contribution plans will increase enrollment much more than unleashing a sea of conflicted insurance agents on them.
Auto-enroll, auto-escalate and auto-default will result in better participant outcomes at retirement and likely financially healthier school districts with higher test scores...and to think, it all starts with a simple idea - make it simple.
Scott Dauenhauer, CFP, MSFP, AIF
Meridian Wealth Management