What’s ahead for retirement plans? While there’s lots of worry about cybersecurity, plan leakage, and, the lingering impact of the current tsunami of ERISA litigation, industry experts see bright spots when looking ahead. More participants engaged in ever better plans offered by more employers—hey, that’s a lot to cheer about, right?
More access and more participation in retirement plans ultimately benefits everyone, especially as our lives—and the cost of living—increases. It is confidence inspiring to hear that some retirement industry experts are signaling optimism when thinking five years out. To compete for and retain talent, more employers have already begun to enhance existing plans. Businesses not yet offering a retirement plan are increasingly preparing to do so. Fiduciary News shares these expert perspectives:
“A current bright spot is that in the effort to attract and retain talent, more businesses, including small businesses, are starting retirement plans and augmenting those already in place,” says Michael Bonfante, Business Development Manager at Colonial Surety in Woodcliff Lake, New Jersey. “Prospective employees are evaluating the offerings more closely—the pressure is on for employer matches, financial education, and the portability of retirement savings. Five years from now, it’s feasible that more employees than ever are participating in ever better plans.”
Technology will help spur this trend. It will make saving and tracking your savings seamless. The rising generation, for whom their telephone is like an electronic appendage, money-related decision making, long a bane to older age groups, is fast becoming second nature.
Whether new to the role or working to offer plan enhancements and add the latest bells and whistles, plan sponsors are advised to remember their continuous fiduciary responsibility for ensuring all participants are benefiting from the plan. As such, it is critical to revisit risk management plans periodically, putting appropriate and current coverage in place—including cybersecurity provisions. Under the high standards of ERISA law, even the allegation of a fiduciary or cyber breach can disrupt plan sponsors from their businesses —and put personal assets at risk. Why take unnecessary chances? Colonial’s ERISA Protection Pack includes both Fiduciary and Cyber Liability Insurance—providing you with:
- Legal defense and coverage for penalties against claims of alleged or actual breaches of fiduciary duties.
- Defense against lawsuits and regulatory actions related to a cyber breach.
- Expert-led response, notification and crisis management services to prevent a cyber incident from spiraling into a disaster.
The annual cost of our ERISA Protection Pack is less than the fee for one hour of expert legal defense if a lawsuit or regulatory challenge strikes you and your business.
Let’s get you covered, in minutes, today: Get Protected Here, Now.
Failure to realistically plan for retirement, with expert help, remains a major, current, problem, making new possibilities for access, engagement and education critical. For example, a recent Schroders survey found that only 23% of respondents have a written retirement plan guiding their retirement decisions-while 37% have not done any planning and find the idea of planning overwhelming, especially amidst so much uncertainty. Hopefully, as Fiduciary News shares, the future will leverage technology toward better retirement planning for more and more savers:
“In 5 years, things that will be different about the retirement plan industry could include: ultra-fast enrollments with little to no friction via text or an app and this being widely available,” says Scott Moulton, Financial Advisor with Equitable Advisors in Milford, Connecticut. “Record keepers will continue to leverage technology to make personalized advice for plan participants a mainstay. Financial literacy is becoming more and more prevalent, and participants seem to be seeking advice that’s specific to their own individual situations. What was once available to high-net-worth individuals will be at the fingertips of anyone with a cell phone.”
Of course it’s challenging to keep up with technology, cybersecurity—and evolving regulatory measures. That’s why plan sponsors across the country find it reassuring to secure Colonial’s Three Point Coverage Package. This gives plan sponsors the greatest value and protection, providing: the required ERISA bond to protect the assets of the retirement plan from theft; Fiduciary Liability coverage to protect plan sponsors and their assets from personal liability; and, Cyber Liability coverage to safeguard businesses and retirement plans from covered losses and expenses in the event of a cyber breach.
Serving customers since 1930, Colonial Surety is the trusted source for the pension industry to secure legally required ERISA bonds, fiduciary liability insurance and cyber-liability insurance. We help safeguard plan sponsors, pension professionals and financial advisors — and keep their businesses compliant — with pain-free, efficient, and friendly service every time.
Colonial Surety Company is rated “A Excellent” by A.M. Best Company, US Treasury listed and in business all across the country.