There are a lot of dreams tucked in with the dollars in the company-sponsored retirement plan.
Freedom from routine. Health. Time with family. What else? Exploring the possibilities can motivate savings—plus, it’s energizing to think about the opportunities around the bend, right?
For many people, thoughts of retirement bring hopes of finally having free time, living in the moment, enjoying family and friends. How about waking up on the beach every morning (or near a lake, river, or stream)? Enjoying time outdoors doing your favorite sport every day—may be living on a golf course literally? On the other end of the spectrum, how about starting up a new company? Relocating to a college town and auditing all the courses?
When we have the good fortune of health and retirement savings, our “post-career” lives can have many different chapters. U.S. News and World Report remind us:
Retirees finally have the freedom to choose how to spend their time. While some people want to relax after a lengthy and stressful career, others are ready to move on to the next adventure. Many people will cycle through periods of leisure and creation at various points in their retirement.
A list of frequently sited retirement lifestyles includes:
- Golf course.
- Back to school.
- Stay at home.
- Second career
Saving for Dreams
Aspirations are a powerful motivator for saving. Amidst the many responsibilities of being a plan sponsor, don’t lose sight of the reason for the plan in the first place—helping employees—and yourself—save for whatever is longed for in retirement.
Many workers across the country are trying harder then ever to save while also steering out from the disruptions caused by the pandemic. Experts advice plan sponsors to look at retirement plan participation rates, deferral rates and personalized rates of return at least annually, if not quarterly.
Understanding these measures can inform plan design and communication strategies to further help participants—and the plan as a whole—achieve end goals. Increasing auto-enrollment deferral rates and adjusting the employer match are two examples of how plan design adjustments might advance plan goals—and employee saving practices.
Guarding Against Risks
Nothing bursts dreams faster than being unprepared in the face of challenges and even disasters. As a plan sponsor, be sure to revisit your risk management plans periodically—and make sure that all appropriate coverage is in place and current. For example, in the event a plan participant sues over an alleged fiduciary breach—and you are personally named in the suit—what’s your coverage?
There’s no need to go it alone. Let Colonial Surety Company help. Just select an affordable, comprehensive package and receive a three point coverage solution:
- The ERISA bond required to protect the assets of the retirement plan from theft;
- expenses in the event of a cyber breach; and,
- 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
As a plan sponsor, understand this: the ERISA bond required for the retirement plan does not cover you as a fiduciary.
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.
Colonial Surety Company provides user-friendly, digital and direct service. You can easily and quickly purchase your bonds and related insurance coverage online—and instantly print or e-file them from your desktop—or anywhere.
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.