ROSELAND, N.J., Jan. 30,
2014 /PRNewswire/ -- As small business owners and their
employees plan for a successful year ahead, ADP®
encourages a fresh focus on retirement savings to help prepare for
a financially sound future. As a leading global provider of
Human Capital Management (HCM) solutions, ADP helps simplify all
aspects of retirement plan administration and compliance. To
help get off to a smart start in 2014, ADP offers retirement
savings tips for both plan sponsors and their
participants.
"ADP is committed to making retirement planning accessible and
easy for both employers and their employees," said Moneesh Arora, senior vice president and general
manager of ADP's Retirement Services division. "A financially
secure retirement is the result of long-term planning. There
is no better time to get started than today, and ADP helps make
saving for retirement easy."
ADP offers the following tips for retirement plan sponsors, also
included in this infograph:
- Conduct a due diligence analysis of your plan's
fees.
- Audit the administrative tasks you must complete as a
plan fiduciary.
- Update your fiduciary file. Document minutes of
investment committee meetings and service provider due diligence
searches.
- Establish and/or review your investment policy
statement.
- Consider developing an employee education policy
statement.
- Conduct a plan health review to examine plan savings
rates by gender and age and to understand how participants are
allocating their savings.
- Optimize your plan by offering automatic options such as
automatic enrollment, automatic rebalancing and automatic deferral
increases.
- Leverage technology and social communication channels to
engage employees.
- Review your compliance testing results to make sure
there are no unwelcome surprises in 2014.
- Consider implementing or increasing your plan match to
increase employee enrollment and savings.
The following tips, also available as an infograph, can help
plan sponsors encourage employees to boost their retirement
savings:
- Create a savings mentality. Employees need
encouragement to save for retirement, and it is especially
important that they begin now if they have no plan in place.
Remind them that saving something is better than nothing, even if
it means saving a small amount each pay period.
- Encourage incremental increases. Suggest that
employees boost their deferral rate this year. For example, if they
were saving 4 percent of their salary in 2013, they could bump it
to 5 percent this year.
- Tell them how they can save even more for retirement with
help from their employer! Remind employees if your plan
provides matching contributions to their 401(k). Explain how much
they should contribute in order to get this match.
- Suggest they talk to a professional. Research
shows that using a professional investment advisor improves an
investor's confidence level in retirement decisions. If your
401(k) plan provider offers this feature, urge employees to take
advantage of it.
- Remind employees to put their eggs in more than one
basket. A solid investment mix is like a balanced
meal—variety is best. Suggest to employees that they allocate
their assets based on their investment risk profile, tolerance, and
goals.
- Set reminders. Help employees stay on track
by sending mid-year reminders for increasing their 401(k)
contribution.
- Tell employees to think about the basics. Help
them make a list of their retirement goals and needs. Tell
them to ask themselves questions such as: "Where will I live and
how much will it cost?" and "How will I pay for health care?"
- Help them mind the gap. Show employees how to
determine how much money they will need in retirement, and
encourage them to revisit this process from time to time.
- Remind them they may be eligible for a catch up
contribution. Employees over age 50 can put more money
into their 401(k).
"Our focus is on making sure our clients and their employees
understand that retirement readiness can be as attainable for them
as it can be for individuals employed at larger
organizations. Whether you are administering a retirement
plan or planning for your own financial future, resolving to make
your retirement savings responsibilities a priority in 2014 can go
a long way in helping you secure a comfortable future," Arora
added.
About
ADP
With more than $11 billion in
revenues and more than 60 years of experience, ADP®
(NASDAQ: ADP) serves approximately 620,000 clients in more than 125
countries. As one of the world's largest providers of
business outsourcing and Human Capital Management solutions, ADP
offers a wide range of human resource, payroll, talent management,
tax and benefits administration solutions from a single source, and
helps clients comply with regulatory and legislative changes, such
as the Affordable Care Act (ACA). ADP's easy-to-use solutions
for employers provide superior value to companies of all types and
sizes. ADP is also a leading provider of integrated computing
solutions to auto, truck, motorcycle, marine, recreational vehicle,
and heavy equipment dealers throughout the world. For more
information about ADP, visit the company's Web site at
www.adp.com.
The ADP logo and ADP are registered trademarks of ADP,
Inc. All other marks are the property of their respective
owners. Copyright © 2014 ADP, Inc.
Media Contact:
Jim Duffy
ADP
(973) 712 - 2070
Jim.Duffy@ADP.com
SOURCE Automatic Data Processing, Inc.