How 401(k) Plan Design is Changing for the Better
In this interview at the NAPA 401(k) Summit, John Sullivan speaks with David Hinderstein of Strategic Retirement Group about the evolving landscape of 401(k) plan design. Hinderstein emphasizes that plan design, once a generic and uniform process, is now becoming more strategic and personalized to enhance retirement readiness.
Rather than following outdated norms like matching a flat percentage (e.g., 50% of 6%), employers are segmenting their workforce and customizing benefits to drive better outcomes. This targeted approach ensures that benefit dollars are spent efficiently and produce the intended behaviors—both in retirement savings and in other benefit areas like healthcare.
Hinderstein underscores the importance of integrating retirement planning with broader corporate strategy, including the effects on the company’s balance sheet. He encourages HR and finance leaders to base decisions on data rather than intuition. With better data now available across retirement, healthcare, and benefits, companies are more empowered to make informed decisions.
This new approach is resonating positively with CFOs and HR departments because it ties financial wellness directly to workforce and organizational health. Ultimately, the goal is to help participants retire with dignity while also supporting long-term corporate goals.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.
