Retailers are innovating to meet consumer demands. Many in the industry are changing the format of their brick-and-mortar stores or focusing more on the costumer experience rather than in-store product inventory. But with innovation comes the need for more highly qualified employees, some of whom might be recruited by businesses in other industries with deeper pocketbooks. Competing with these employers may require taking a closer look at your employer-sponsored retirement plan and making improvements, such as these:

  • Increase plan participation rates
    Employees who do not partake in your plan are missing out on tax advantages now and may not be able to retire successfully later. Automatic enrollment makes it easier for them to start saving as soon as they become eligible.
  • Provide financial education
    Educating employees on the benefits of your retirement plan and other financial topics can help them make more informed decisions and further improve plan participation.
  • Avoid investment funds that pay 12b-1 or sub-TA fees
    Arguments can be made that funds with these types of fees are not in your participants’ best interests, which can add to your fiduciary risk. Instead, choose plans that offer a selection of low-cost or zero revenue funds.

For a retail retirement plan report card and information on how ADP can become your retirement ally, download our insight.

Unless otherwise disclosed or agreed to in writing with a client, ADP, Inc. and its affiliates (ADP) do not endorse or recommend specific investment companies or products, financial advisors or service providers; engage or compensate any financial advisors to provide advice to plans or participants; offer financial, investment, tax or legal advice or management services; or serve in a fiduciary capacity with respect to retirement plans. Only registered representatives of ADP Broker Dealer, Inc. (ADP BD), Member FINRA, or, in the case of certain products, a broker-dealer firm that has executed a marketing agreement with ADP, Inc., may offer and sell ADP retirement products or speak to retirement plan features and/or investment options available in such ADP retirement products, and only associated persons of ADP Strategic Plan Services, LLC (SPS) may speak to any investment management or advisory services provided by SPS or any third party in connection with such ADP retirement products. SPS is an SEC Registered Investment Adviser. Registration does not imply a certain level of skill or services.

ADPRS-20220124-2866