Cyber

New Priorities: Save, Save, Save

02.11.2021

 

Many people who have been able to remain healthy and working during the COVID-19  crisis are increasingly focused on saving money. Insights from a recent survey hold important clues for how retirement plan sponsors can support their efforts.

Saving for Retirement Tops the List

 Financial stress set off by the COVID-19 pandemic has driven focus to saving money. Working and retired Americans, surveyed by Harris Poll on behalf of Empower Retirement and Personal Capital, put “saving for retirement” and “paying off personal debt” at the top of their financial goals. As 401kSpecialist reports, it seems that the pandemic has been a catalyst for saving:

  • 83% of respondents said they want to minimize worrying about their finances this year, mainly through increased savings.

 

  • 52% of respondents said they will seek more guidance when it comes to their financial strategies.

 

  • 33% said they are more likely to work with financial professionals as opposed to 24% at the onset of the pandemic.

 

  • 41% of survey respondents said they plan to spend less money on non-essential items.

 

  • 38% percent plan to save more of each paycheck they receive.

 

Healthy Retirement Plans

 Now more than ever, plan sponsors have an important role to play, communicating with employees about the retirement plan. Financial Wellness reminds us that an active plan will have increasing participant rates and contributions. Do your employees and participants know how to enroll and adjust contributions?

As you step up communications, remember, older employees may be confronting disruptions on the path to retirement–and employees of every age will benefit from increased awareness of how even modest contributions to the retirement plan add up.

Ellevest shares this encouragement about taking financial goals step by step—and not stopping:

If we learned anything last year, its that plans change. Goals that seemed important may suddenly need to shift. But that doesnt mean they go away. Instead, theyre a work in progress. Sometimes — like, say, when theres a giant worldwide pandemic that lasts a year and a recession thats hitting women harder — you take a step back. Sometimes youll need to press pause. Sometimes you score a small win. But still, a work in progress….Is time to look at where youre at now and what the next small win for your money goals could be. 

Since reducing financial stress contributes to increased workplace productivity, take every opportunity to encourage participants to access the workshops, information and tools offered by the plan’s service providers.

With so much important work to do, don’t forget to protect the retirement plan—and yourself as a fiduciary. Let a leading national expert help you: Colonial Surety Company offers an affordable, comprehensive solution. Just select a coverage package and receive:

  • The ERISA bond required to protect the assets of the retirement plan from theft; 
  • Fiduciary Liability coverage to protect you and your assets from personal liability;
  • Cyber Liability coverage to safeguard your company and plan from covered losses and expenses in the event of a cyber breach.

Colonial Surety Company’s ERISA bond package provides plan sponsors up to $1,000,000 of fiduciary liability insurance. Secure the greatest overall savings and protection with our 2-3 year packages.  Colonial even includes extended coverage to ensure your ERISA bond remains US Department of Labor compliant.

Obtain Your Complete ERISA Bond Package Today!

 

Colonial Surety Company is in business all across the USA. We are rated A Excellent” by A.M. Best Company and  U.S. Treasury listed.