Are your employees prepared for retirement? The vast majority of employees would answer “no” to that question. 

benefits pro article revealed that only 35% of retirees feel adequately prepared financially—and 25% fear they will outlive their savings. Similarly, MetLife’s U.S. Employee Benefit Trends Study reports that 39% of employees say they are significantly behind or haven’t started saving for retirement.  

These statistics point to a huge stressor for employees—and the need for companies to enhance their retirement and financial well-being communications. At Westcomm, we’ve been able to help employers move the needle—including one company who experienced a 12% increase in 401(k) enrollment after a targeted communications campaign—and elevate employee awareness and understanding. 

If you don’t talk about your company’s retirement plan in a way that helps employees understand its benefits, then they are less likely to take advantage of it and use it as a way to meet their long-term financial goals. 

Here are four things we do at Westcomm to make sure retirement communications hit the mark for our clients: 

 1. Use a targeted approach. 

Participants don’t typically respond to a “one-size-fits-all” approach. 

We segment messages to fit various employee groups by considering things like age, salary and current participation level to deliver communications that are most relevant to each segment. What motivates employees in their 20s to contribute is vastly different than the motivation for employees age 50+ who are closer to retirement. 

 2. Personalize communications. 

This approach resonates more than anything else. It gets the attention of employees and generates a better response. 

For one client, we used variable data to personalize the message. Employees participating below the maximum match level received a personalized communication piece that outlined EXACTLY how much free money they were leaving behind by not contributing to the maximum match level. 

 3. Think beyond 401(k) plans. 

Although retirement plans are the most significant part of an employee’s long-term financial planning, there are other benefits that can impact long-term financial health. Many consider HSAs to be another effective way to save for retirement expenses. Your communications should help employees understand that HSAs are not just for current healthcare expenses but can also grow and be part of their retirement savings strategy. 

4. Use everyday language and engaging visuals. 

Jargon commonly used by retirement planners and others in the financial industry doesn’t resonate with most employees—it’s alienating and overwhelming. Instead, easy-to-understand language and informative graphics are much more effective in explaining the value of retirement planning. 

Help Employees Make Best Decisions for Future 

When it comes to retirement and financial well-being communications, you’ll reap more dividends when you use communications that are simple, concise, targeted and personalized. And by doing so, you’ll help employees make the best decisions they can for their future retirement. If you want to make an investment in your retirement communications, give us a call.