Effective 401(k) Plan Design Elements

The video titled “2018 Nuveen Leadership Council – George Fraser, Retirement Benefits Group” features an interview with George Fraser, who discusses effective strategies in retirement plan design, particularly focusing on auto-enrollment and encouraging participation among employees.

Key points from the interview include:

  1. Challenges in Retirement Planning: Fraser emphasizes the need to address the everyday financial concerns that prevent people from participating in retirement plans, such as managing daily expenses.
  2. Auto-Enrollment and Escalation: He highlights the importance of automatic processes, like auto-enrollment and automatic escalation of deferral amounts, to increase participation rates in retirement plans. Fraser notes that these strategies help overcome the fear and inertia that often keep employees from saving for retirement.
  3. Social Security as a Motivator: Fraser explains how presenting Social Security benefits as a foundational element can create hope and encourage employees to contribute to their retirement savings.
  4. Case Study of Success: Fraser shares a success story of a company that increased its retirement plan participation from 40% to 90% within 30 days, even without a company match, by implementing these automatic features.

The video is part of the Nuveen Leadership Council series and is aimed at providing insights into effective retirement plan management.

For more detailed insights, you can watch the full video here.

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