The First Thing Plan Sponsors Should Focus on with their 401(k)/403(b) in the midst of Coronavirus, Market Crashes and Business Interruptions
Interesting times indeed for all of us. We’re all part of an an event unlike anything any of us have seen before. The stock market is experiencing volatility not seen since some of you maybe didn’t have any money.
During this time, many plan sponsors are searching for answers on what they should be doing right now with their 401(k)/403(b). In this article, I am going to share the first of four things I am recommending plan sponsors focus on to help both their company and employees through this difficult time.
In a recent JP Morgan study of 401(k) plan sponsors, they found that since 2013, plans that have assets of less than $1 million to plans with more than $250 million in assets all experienced an increase in feeling responsible for their employees financial wellness. In fact, the survey respondents had an average of 14% increase in feeling responsible for providing some type of financial wellness for their employees.
For those employers that took action and provided some type of education or resources for their employees during that time, thank you. Hopefully, those employees used those resources to improve their financial lives and prepare themselves for events like what we’re going through right now.
For any employers that haven’t jumped on this trend, there is still time. In fact, it is likely needed now more than ever.
Just like everyone loves the sound of a firetruck when their house is on fire, everyone will welcome those 401(k) webinars and sessions right now.
If you’re a plan sponsor reach out to your providers and get a firm grip on what resources are available to you. Then start communicating with your employees about the resources that they have access to.
That’s what the Alliant Retirement team across the country is focused on with our clients right now. And hopefully, we’re meeting those expectations.
If you’ve got questions about what else you could be doing right now for your employees or you’re not sure what to do, feel free to reach out to me.
Be well,
Aaron Pottichen
Advisory Services offered through Alliant Retirement Consulting, a federally Registered Investment Advisor.
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