10 Strategies To Optimize Plan Design

Effective plan design is the key to helping your employees overcome poor decision-making and behavioral roadblocks. Here are 10 strategies to optimize your plan design and drive successful retirement outcomes for your employees.


  1.  Establish and track “success measures” for key factors such as participation rates, deferral percentages, percentage of participants invested in professionally managed solutions, etc.
  2.  Utilize automatic enrollment
  3.  Set your default rate at a minimum of 6%
  4.  Utilize automatic escalation
  5.  Set your escalation rate at 1-2%
  6.  Set an escalation cap of at least 15%
  7.  Sweep eligible, non-participating employees into the plan each year
  8.  Sweep under savers (those participants saving less than the default) up to the default percentage each year
  9.  Allow Roth contributions
  10.  Fully embrace behavioral finance concepts and ideas
Looking for more?

We are dedicated to helping our clients develop benefit plans that fit the needs of the business owner, focus on company goals, and help employees feel confident in their financial future. For more information on our retirement consulting services along with our (k)larity @ Work™ financial wellness programs check us out at www.greenspringadvisors.com or give us a call at 443-564-4600.

Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

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