QOTW: Plan Features for 2022

Last week we asked plan sponsors what benefits strategies or plan features were of most interest for 2022. For 2022, what retirement benefit strategies or plan features are of most interest to you? More than half indicated that plan benchmarking is a goal this year while a quarter indicated they will be looking at adding advice or managed accounts, and a quarter will be adjusting automatic features.

Comments on this included:

• a robust plan and professional guidance are the best strategies
• adding a brokerage window this year
• I think annuity options could be a nice plan feature if they can be implemented at a group rate type of option for beneficiaries.

We also asked plan sponsors what word they wish providers and advisors wouldn’t use because their participants don’t understand it. Answers included:

• 401k savings vs. social security benefits upon retirement
• annuities
• Budget - should use the words 'Spending Plan'.
• Deferral
• Deferral
• Distribution
• Diversification
• Future investment elections
• Hardship
• How compound interest works and how it can help you save
• Loan Default
• Loans
• Matching
• safe harbor - need to explain what it means - employees don't understand the term
• True-up