Encouraging participants to roll assets into your plan can be a win-win

When I tell people what I do for a living, I’m often met with similar responses: “I have so many 401(k) accounts. I need to do something about that.” Over the years, I’ve heard dozens of confessions about retirement planning trials and tribulations. I’ve come to realize that this pressure “to do something” is what causes the most anxiety.

The truth is that life is busy for all of us. And these days, the number of retirement accounts we are juggling can be quite large. According to the Bureau of Labor Statistics, baby boomers held an average of 11.7 jobs between the ages of 18 and 48. And when we switch jobs, we have to figure out what to do about those 401(k)s.

Fortunately, the defined-contribution industry is exploring ways to automate this process to make it easier for us to move our savings from one job to the next and prevent bad behaviors such as cash-outs. Until that happens, on-the-spot interventions can help encourage participants to streamline their accounts and provide them with peace of mind that their retirement planning is in order.

To help your participants navigate the murky waters of consolidating old accounts, consider conducting a roll-in campaign. Orchestrating such a campaign doesn’t have to be an elaborate task. All you need is a good rollover form and a captive audience. So be creative with the ways you enlist people to participate.

START SMALL

A successful roll-in campaign starts with a rollover form. You can use both online and paper methods — whichever will help you reach the most employees and be easiest to process.

Then pilot your campaign with small groups of employees. Strategize different ways to get people’s attention; once you discover what works, you can expand your efforts. Think creatively: Include a booth at a benefits fair, or promote your roll-in campaign around National 401(k) Day. Give people opportunities to roll in on the spot through electronic tablets or old-fashioned paper. Reducing barriers to action can make it easier for employees to follow through with their intentions.

As you consider how to conduct your roll-in campaign, here are a few pointers for translating your strategy into tactics:

1. Understand record-keeper requirements.

To make the process smooth and efficient for employees, make sure that your record keeper supports your roll-in campaign. Ask your record keeper to describe the information needed to roll assets into your plan, and look for opportunities to streamline that information further. Also be sure the record keeper is prepared for the spike in roll-in volume that could occur if your campaign takes off.

2. Get buy-in from other stakeholders.

A successful campaign requires that your colleagues are on board. Get alignment and support from senior management to promote the campaign, and ask managers to spread the word in staff meetings. Manager meetings are a powerful forum that can help you deliver the kinds of individualized messages that employees are more likely to act upon.

3. Use communications strategies that work.

In your campaign materials, focus on the benefits of rolling in — particularly that doing so can help employees reduce stress and streamline their financial lives.

Orchestrating a roll-in campaign doesn’t have to be an elaborate task. All you need is a good rollover form and a captive audience.

4. Try different approaches.

There isn’t just one path to successful participant communications. Certain methods of communication might work better than others, so don’t be afraid to experiment a little.

For example, you could send the same piece of information through internal communications and through your record keeper, then track results to see which method was most successful. You can use the data to inform future communications efforts.

Ultimately, rolling in is a simple step that stands to make participants’ retirement savings easier to manage. If your campaign can help improve their retirement readiness, your participants will value you for it.

Megan Yost is head of DC participant engagement at State Street Global Advisors.