2012 Hot Topics in Retirement - Aon

Communication Initiatives Many employers use communication initiatives to educate and influence
behavior in the defined contribution plans. Among the more popular undertakings
that employers are focusing on in 2012 are a general understanding
and appreciation of the plan, plan participation, and contribution levels, as
well as retirement income adequacy.
Likely Defined Contribution Communication Initiatives in 2012
Initiatives
General understanding and appreciation
of plan
Plan and/or fund expenses
Plan participation
Participant contribution levels
Diversification/fund usage
Retirement income adequacy
Availability of resources to help with
retirement planning
Retirement income estimates and
retirement process
Defined contribution decision making
within a broader financial or total
benefits context
Broader financial education
Encourage new hires to roll 401(k) from
previous employer into your plan
Rolling over versus cashing out of plan
Loan-taking or in-service withdrawals
(n ranges from 362 to 369)
Of course, fees (plan and/or fund expenses) are also a focus for the
coming year with nearly half of sponsors listing this as a likely communication
initiative, compared with only 39% of sponsors in 2011. This is at least
partly attributable to regulatory requirements. Availability of resources that
participants can access is also a large focus for 2012 (78%), as many sponsors
have enhanced their plans in recent years.
Very
Likely
56%
49%
44%
41%
40%
40%
40%
28%
27%
20%
14%
13%
10%
Somewhat
Likely
33%
31%
36%
37%
40%
40%
38%
39%
42%
33%
25%
35%
25%
Somewhat
Unlikely
9%
15%
15%
17%
17%
16%
16%
26%
23%
33%
41%
38%
42%
Very
Unlikely
3%
5%
6%
5%
2%
4%
6%
7%
8%
14%
20%
14%
23%
Aon Hewitt 29