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.
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