UK - Employers need to spend time and money on communication to increase take-up rates in defined contribution plans, Winterther Life says.
The DC provider says employers should learn from the US experience and its 401k plans.
This shows that providing face-to-face education meetings with scheme members can boost take-up rates by over 12%.
Corporate pensions consultant Lorraine Fraser said: “Other media such as videos, IT software and printed literature can also add value.”
Fraser believes the industry needs to educate two issues in particular – asset accumulation for the new generation of employees, and asset disbursement for those planning for or already in retirement.
“As a DC industry, we have to be clear about who adds value, where, when and how,” she added.
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