NEW YORK--(BUSINESS WIRE)--The Guardian Insurance & Annuity Company, Inc.® (GIAC), a wholly-owned subsidiary of The Guardian Life Insurance Company of America® (Guardian), today released new findings from its comprehensive national survey revealing that small plan participants are missing out on available investment options in their 401(k)s compared to their larger counterparts.
The Guardian Small Plan 401(k) RetireWell Study ℠2.0: What’s Working and Not Working for Small Plan Participants (the Study) reveals that plan participants at small businesses may not have all of the tools and resources available when compared to large businesses to optimize retirement savings. Small plans generally have access to fewer plan features and services, and fewer investment options.
Some of the major differences between small and large plans include the diversity of investment options available, the ability to purchase stock in the company, and access to fixed rate accounts. The Study also revealed that small market participants are less knowledgeable and less engaged in their plans than their larger plan counterparts.
This is particularly important, as 401(k)s and other defined contribution plans are by far the largest anticipated source of retirement income for plan participants. The lack of options and services demonstrates an opportunity to enhance overall plan design and investment features made available to small plan participants.
“The RetireWell Study ℠ reveals a disconnect between small plan participants and their larger plan counterparts that we at Guardian would like to see rectified,” said Douglas Dubitsky, Vice President at Guardian Retirement Solutions™. “Americans rely almost exclusively on their 401(k) accounts for their retirement income, so making access to a broad range of investment options and support for employees of every size company is critical for better retirement outcomes.”
Small and large plan participants share a lack of comprehension regarding terms. Most participants, for example, have heard the term “contribution rate” or “vesting” or have heard about loans from their accounts. Although they have heard of the terms, many do not understand how these terms may affect their own retirement planning. An unsettling notion given these participants are targeting high rates of return. However, small market participants in particular generally have less access to support and appear to be less knowledgeable and therefore, less engaged in their plans.
“Participants need more education and support from their employers to make better decisions and realize their retirement dreams,” stated Mr. Dubitsky. “Guardian makes a robust suite of educational tools and resources specifically designed to help small plan participants plan, save, and invest for retirement. The simple conclusion is that the more participants know, the more they will save.”
Guardian Retirement Solutions™ has developed the RetirementConnect education program to help engage and educate small plan participants. This program is delivered by a Guardian Relationship Manager, who provides enrollment meeting support and helps plan sponsors develop programs to increase plan participation, participant deferral rates, and employee engagement. Participants also have access to online tools, calculators, videos and articles through a newly enhanced website, 401k.GuardianLife.com.
Guardian Retirement Solutions™ enlisted the assistance of Brightwork Partners, LLC to conduct this nationally-representative, quantitative 25-minute online survey of 2,000 active 401(k) participants in November 2014.
To obtain a copy of The Small Plan 401(k) RetireWell Study SM: What’s Working and Not Working for Small Plan Participants results, please visit: http://www.guardianlife.com/401kRetireWell.
The Guardian Life Insurance Company of America® (Guardian) is one of the largest mutual life insurers with $6.8 billion in capital and $1.3 billion in operating income in 2014. Founded in 1860, the company has paid dividends to policyholders every year since 1868. Its offerings range from life insurance, disability income insurance, annuities and investments for individuals to workplace benefits, such as dental, vision, and 401(k) plans for businesses. The company has approximately 6,000 employees and a network of over 3,000 financial representatives in more than 70 agencies nationwide. For more information about Guardian, please visit www.GuardianLife.com.
Guardian Retirement Solutions™ refers to the administrative support services, including participant recordkeeping as well as marketing, enrollment and educational materials, provided by GIAC in conjunction with the individual and group retirement products issued by GIAC. For more information about Guardian Retirement Solutions, please visit 401k.GuardianLife.com.