While you may have never heard of 401(k) Day or enjoyed a piece of cake to celebrate the event, it is important to share information about your 401(k) or 403(b) plan with your employees, regardless of the date you see on the calendar today.
401(k) Day, started by the Plan Sponsor Council of America (PSCA) in 1996, is usually the Friday after Labor Day. This day was chosen by the PSCA so employees can “start the week with Labor Day and end the week with retirement.” The organization provides free materials on its website to employers to educate employees about their retirement plans. These materials can be customized with your organization’s logo and the specifics of your plan.
While it is tempting to include retirement plan information in upcoming benefit open enrollment meetings, you may want to reconsider combining these two campaigns. Employees may become overloaded with benefit choices. The PSCA retirement materials can be used anytime during the year to educate employees about financial wellness. They include flyers, a PowerPoint presentation, and email banners.
Financial stress and worry are more prevalent among today’s employees, with high housing costs in many areas, economic uncertainty, and student loan debt at an all-time high. Financial education is key to easing these concerns. Taking the time to educate employees about your organization’s retirement plan, including employer matching contributions, tax savings, life stages strategies, and providing access to retirement planning support, will go a long way toward enabling your employees to have a more secure future.
Celebrate 401(k) Day any day of the year! Your retirement plan administrator and plan financial advisor can also provide assistance.
Laurie Enke is a human resources consultant for Employers Council.