At the Excel 401k Conference in Las Vegas, Kristina Keck of Woodruff Sawyer discusses with John Sullivan why enrolling high-income earners in 401(k) retirement plans can sometimes be more challenging than enrolling lower-income participants. Drawing on her experience in Northern California — including high-rent regions like San Francisco and Los Angeles — Keck explains that many employees face financial pressures despite earning higher incomes. These pressures include exorbitant housing costs, substantial student loan debt, and lifestyle-related expenses.
Keck emphasizes the importance of communicating the long-term benefits of retirement savings to younger and financially pressured employees. She highlights the psychological challenge of promoting delayed gratification, where short-term pleasures (like going to concerts or buying luxury items) often win out over long-term financial goals. To address this, her team works to visualize retirement outcomes, showing how even small contributions — like 1% of a paycheck — can significantly grow over time. They simplify complex financial ideas, using relatable examples such as “$7 per paycheck equals $45,000 in retirement.”
Additionally, Keck talks about the innovative use of technology in financial education. Her team is rolling out text message-based communications to improve engagement. With much higher open rates than email (90% within a minute), texting offers a promising way to connect with a diverse, often dispersed workforce — especially those not regularly in front of a computer.
The interview concludes with a nod to the need for tailored strategies based on employee demographics and workplace culture.