Helping them figure it all out

Employees need big push from employers to properly plan for retirement years
By Annie Massey
||Last Updated: 12/18/2008

If you’ve ever asked a teenager to clean a bedroom, you’ll understand how the best intentions can fail. You can provide clear direction, mops, brooms and cleaning supplies, but the chance of finding a sparkling bedroom is slim, unless you resort to extraordinary measures.

Getting employees to fully understand the importance of effective retirement planning can also be a challenge for sponsors of capital accumulation plans (CAPs) — defined contribution plans and savings plans in which members make their own investment choices. It’s clear the message about retirement planning is frequently not received or acted upon.

The solution isn’t necessarily to provide more content. Instead, employers should start by examining why many employees aren’t even getting to the starting gate.