The media often use the term “retirement readiness” in discussions of whether retirement plan participants will be properly prepared for retirement at the end of their careers. There is no assurance that any 401(k) plan can place participants where they need to be when they wish to retire. Participation in these plans is voluntary, contribution levels are discretionary and investment management is the responsibility of the participant. So the best that a plan sponsor can do is suggest a way of participating and provide the tools for participants to construct a path to retirement that works for them. The following plan attributes have become associated with a 401(k) plan that is designed to help participants achieve retirement readiness:
Getting employees to participate:
