Why ‘Well Off’ 401(k) Participants Are Sometimes Harder to Enroll
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.
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.
