There’s Still Time for Participants to Get a Check-Up

Review goals and investment strategies

Setting realistic goals can be tricky, so encourage Participants to consider expenses that will be eliminated or reduced when they stop working (such as commuting costs, dry cleaning costs, mortgage payments, or children’s college tuition), and new or increased expenses (such as travel and healthcare costs).

After considering these costs, Participants can reassess what they will need to retire comfortably, and decide if they should modify their investment strategy.

Check overall savings progress

Participants should review their retirement account balances to determine if they are on target to meet their retirement goals. Participants can utilize Transamerica’s online calculator, Saving Up, to determine if their current savings rate is adequate, and they may make necessary changes to reach their goals.

Rebalance asset mix

Once Participants have checked their progress, they may decide to rebalance their asset mix. They can see an asset class breakdown of their accounts in their quarterly statements and compare this with their original asset allocation. If the mix has shifted, they can make the necessary changes to bring their mix back to where it should be.

If your Plan offers automatic rebalancing, this would be a great time to promote this feature.

Re-evaluate contribution rate

If you haven’t done so already, communicate the latest IRS annual contribution limits to your Participants. Be sure to reinforce the benefits of contributing the maximum amount allowed to the Plan, particularly the potential tax savings. Direct Participants to Transamerica’s Loose Change calculator to see how an increased contribution could affect savings.

If your Plan offers a company match, this is an ideal time to remind Participants about it. Those who are not taking advantage of the match may be encouraged to increase their savings rate – even a small amount – to receive the full company match.

Participants should also be encouraged to re-evaluate their savings rate to accommodate life changes, such as marriage, birth of a child or divorce.

Participants can make informed decisions about their retirement accounts when armed with the right information. By working with the appropriate tools and resources, Participants can adequately re-evaluate their retirement savings progress and make changes to help them achieve their goals.