retiremap plan sponsor performance report

7/31/2019 Retiremap Plan Sponsor Performance Report

1/13

Prepared for Company 1For the Period Starting April 3, 2013 and ending May 13, 2013

Boulevard R 28 Second St. Suite 300 San Francisco, CA 94105

Phone: (888) 412-5837 [email protected]

Plan Sponsor Name

Launch of Company 1s Financial Wellness Program

Performance Report
mailto:[email protected]:[email protected]


2/13

Employee Engagement

Key Usage Metrics

Of the 100 employees that were targeted for the Empower Your Finances campaign, these are the

results from the initial launch:

How Employees Accessed the Program

The majority of Company 1 employees attended the iPad workshops:

60%

2%

38%

Completed the goal setting process and received a Starter RoadmapStarted the goal setting process, but did not complete itDid not start the goal setting process

25%

75%

Attended iPad WorkshopAccessed through email activation link

Company 1

Performance Report: Launch of Company 1s Empower Your Finances Program 1


3/13

Usage Metrics by Action Taken

The following data illustrates the actual number of participants who engaged in the Empower Your

Finances campaign launch and which actions they took.

Engaged Employee DemographicsThe following is aggregate demographic information for the employees who completed the goal setting process and received

a Starter Roadmap:

Age

28-30 years old: 39.5%

31-35 years old: 42.1%

36+ years old: 18.4%

Employees who are married: 29%

Employees with one or more child: 5%

Employees that own a home: 18%

0

10

20

30

40

4038

16

615

Started the goal setting processCompleted the goal setting process and received a Starter RoadmapDecided to increase their auto-deferral rateRequested information on auto-escalationRequested to be contacted by the Vita Planning representative

Company 1



4/13

Behavior Change

Deferral Rate Changes

As a result of the Empower Your Finances program, a significant percentage of employees who

completed the goal setting process decided to increase the amount that is automatically saved

through their retirement plan by automatic paycheck deductions (auto-deferral).

The average auto-deferral increase was 6.3% of pay.

Which Engagement Approach Led to Greater Change?

The iPad workshops led to significantly more employees increasing their deferral rates. In the iPad

workshops, 50% of employees decided to increase their savings rate.

58%

42%

Particpants who decided to increase their auto- deferral rateParticpants who did not decide to increase their auto-deferral rate

Company 1


6%

94%

Decided in iPad workshopDecided with email activation link


5/13

Deferral Rate Increase

Here is the change in participant savings behavior before and after the Empower Your Finances launch

campaign:

Employee Requests to Meet with a Plan Advisor Representative

During the iPad workshop, 30 employees had a chance to request to meet with their 401(k)

representative from the financial advisory firm. Here is the breakdown of requests.

0%

3.25%

6.5%

9.75%

13%

6%

12.3%

7.5%

Average Participant Auto-Deferral Rate Before the CampaignAverage Participant Auto-Deferral Rate After the CampaignAverage Participant Auto-Deferral Rate (Nationwide according to EBRI)

Company 1


50%

10%

40%

Requested to meet with a representative from Vita Planning, but have not met yetMet with a representative from Vita Planning after the workshopsDid not request to meet wtih a representative from Vita Planning


6/13

Financial Goals

Employees Financial Goals by Popularity

Company 1 employees who completed the goal setting process selected the following goals:

Company 1


68% selected this goal





















7/13

Financial Wellness

Saving Rate

Company 1 employees are saving at a high rate when compared to the national average of 3.7%. On

average, Company 1 employees are savings 12.2% of household income, with a median value of

11.3%. Here is the breakdown based on rates:

Debt Free

Partly because of the smaller number of employees who own homes, the majority of employees are

debt free. For employees with debt (excluding a mortgage), the average was $10,711.

47% 53%

Debt freeSome debt

Company 1


Saving 0-5% of household paySaving 5-10% of household paySaving 10-15% of household paySaving more than 15% of household pay


8/13

Debt Details

Company 1 employees indicated that they had debt in the following areas:

1. Credit Card Debt: 18.4% of employees

2. Student Loan: 15.8% of employees

3. Car Loan: 5.3% of employees

4. Other Debt: 0% of employees

Net Worth

Only four employees had negative net worth (they owe more than they have in savings, including their

home). There were three employees who had a net worth of more than $400,000, but for graphingpurposes, we excluded those employees to provide a more detailed chart.

28

31

34

37

40

-$25,000 $60,000 $145,000 $230,000 $315,000 $400,000

Net Worth by Age (Less than $400,000; Younger than 40)

Net Worth

Company 1



9/13

Retirement Readiness

Distribution of Employee Retirement Readiness

As a result of the new Empower Your Finances campaign, we can now track the distribution of

employees retirement readiness. This is how it broke down, by number of participants in each

readiness scoring section (100 is the most prepared and 0 is the least prepared for retirement) for the

period covered by the report:

The average employee score is 67, while the median value is 54.

0%

25%

50%

75%

100%

7.9% 6.25% 16.6%

34.2%50% 27.7%

14.3%

18.4%6.25%

16.6%

57.1%

39.5% 43.7% 38.8%28.6%

All Employees Aged 28-30 Aged 31-35 Aged 36+

Scored 25 or Less (Least Prepared for Retirement)Scored 25- Less Than 50Scored 50 - Less Than 75Scored 75 or Greater (Most Prepared for Retirement)

Company 1



10/13

How Employees Are Investing

Here is the distribution of how employees describe how they have invested their savings:

Analysis: Of those employees who are invested in All cash, on average they have a total savings of $27,700,

with a median value of $21,000. This same group invested in All cash had 13% with negative net worth, 40%

with a net worth greater between $0-15,000 and 47% with a net worth greater than $15,000.

Assumptions Used to Calculate Employee Retirement Readiness

The following assumptions were used to calculate retirement readiness:

Inflation Rate: 2.5%

Success rate of Monte Carlo simulations for non-retirement years, based on portfolio type:

75%

Replacement rate for income at retirement:

First five years of retirement: 70%

Early middle retirement: 60%

Late middle retirement: 60%

Last five years of retirement: 65%

Percentage of retirement assets that are tax deferred: 50%

Rate of return on investable assets in retirement (after tax): 5%

Company 1


All cashMostly cash and bondsHalf stocksMostly stocks

All stocks


11/13

Employee Feedback

Results of the Employee Survey

At the conclusion of the iPad workshop, employees were given the opportunity to provide feedback on

the workshop. Seventy percent (70%) of employees took the time to respond and here is their

feedback:

Company 1


85% plan on saving more through

their retirement plan

80% feel more prepared to take the next step

to improve their financial wellness

74% felt more interested in

meeting with a financial professional

76% felt more engaged with

their retirement plan

I am definitely more willing to take the next step to improve my financial wellness. I need

more info about increasing my savings rate through my retirement plan.

- Anonymous Company 1 Employee feedback


12/13

Engagement Activity

Educational Campaign Details

In order to engage participants, the following activities were conducted by Boulevard R to launch the

Empower Your Finances campaign:

Activity Date

Five Empower Your Finances iPad workshops to launch theprogram

April 3, 2013 from 11am-2pm

Email Campaign #1: Sent introductory email with activation linkemailed to every Company 1 employee who did not attend aworkshop

April 16, 2013 at 2:30pm PT

Email Campaign #1: Sent reminder email with activation linkemailed to every Company 1 who had not yet created an account April 19, 2013 at 10:15am PT

Areas for Improvement

Based on employee feedback forms, the launch with the iPad workshops can be improved in the

following three ways:

1. Give employees the big picture of the overall program and what will be happening after they

complete this first step of creating their account and getting their Starter Roadmap

2. For those employees who sign up for a workshop in advance, send them a reminder to bring

their provider log in information and some basic financial information (eg. approximately how

much they save per month)

3. Create a sign up form for employees to reserve a time to meet with a representative from the

financial advisor firm

Company 1



13/13

Next Steps

Launch Website

The new website for Company 1 has been created and optimized for mobile.

Start Email CampaignsStart sending monthly personal finance articles created by the Financial Planning Association. We

have to decide whether these will be emailed out to employees from Amanda or James.

Schedule the First Webinar

Decide on which topic to cover in the first webinar. Based on the popularity of the goal for Buy a

Home, we suggest launching the webinar series with a presentation on the process to prepare for

home ownership.

Company 1


retiremap plan sponsor performance report

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