Market-Based Cash Balance Plans May Solve the Lifetime Income Challenge

When you think of the benefits of your retirement plan, tax-deferred savings and matching contributions are probably top of mind. But there’s more to your workplace retirement plan than meets the eye. Beyond the basics, retirement plans can come with a number of lesser-known advantages that can help you protect, grow, and pass on your savings more efficiently. Here are six perks you might not even realize you have. Dollar Cost Averaging. Your retirement contributions go into your account on a regular schedule, regardless of fluctuations in the market. This means you buy more shares when prices are low and fewer when prices are high, evening out your average cost per share over time. This is known as “dollar cost averaging.” It’s a simple, steady approach that takes the guesswork and emotion out of investing, helping you stay consistent through market ups and downs. Greater Creditor Protection. Retirement balances are generally shielded from commercial creditors, adding an extra layer of security for your nest egg. This protection is built into federal law, offering a safeguard most personal investment accounts can’t match. Even if you face a lawsuit or bankruptcy, your retirement savings are generally off-limits to most creditors. While certain exceptions can apply — such as for federal income taxes owed to the IRS — this layer of protection can help keep more of your hard-earned savings dedicated to your financial future. Access to Exclusive Investments. Your retirement may include options not found in regular brokerage accounts, such as collective investment trusts (CITs). These pooled investment vehicles, maintained by a bank or trust company, are designed specifically for retirement plans and often offer lower costs and greater operational efficiency than mutual funds. CITs operate with fewer marketing and administrative expenses, and they’re managed in bulk for institutional investors like retirement plans. Lower costs can translate directly into higher long-term returns, which can help your balance grow faster over time. Easier Estate Planning. You can name beneficiaries directly on your retirement account, helping your savings transfer smoothly without probate delays. By naming your beneficiaries, you can help ensure that your savings pass directly to your chosen heirs, avoiding the time, expense, and complications of probate. Regularly reviewing and updating your beneficiary designations after major life events, such as marriage, divorce, or the birth of a child, can help keep your estate plan aligned with your wishes. Professional Oversight. Retirement plans have designated fiduciaries that are responsible for reviewing fund performance, keeping fees reasonable, and ensuring investment options meet the plan’s standards, giving you the benefit of built-in due diligence and expert oversight. These fiduciaries are legally obligated to act in your best interest, quietly working behind the scenes for your benefit. Potential Fee Savings. Many larger plans offer institutional share classes with lower fees. While the difference may seem small, perhaps just a few tenths of a percent, those cost savings can add up to tens of thousands of extra dollars over decades of compounding. Lower expenses mean a higher percentage of each contribution stays invested, allowing more of your savings to keep working for you. By understanding and taking advantage of these benefits, you can help make the most of your plan and strengthen your retirement readiness. A little knowledge can go a long way toward securing your financial future. Sources: https://www.equifax.com/personal/education/life-stages/articles/-/learn/protect-retirement-account-from-creditors https://www.kiplinger.com/personal-finance/the-basics-of-estate-planning https://www.ey.com/en_us/insights/financial-services/the-growing-popularity-of-cits-in-us-retirement-plans

Access to an advisor tends to improve retirement confidence, according to a recent survey by the Employee Benefit Research Institute (EBRI). The Retirement Confidence Survey found that 83% of workers with advisory access feel confident about retirement readiness, compared with just 53% of those without. But is that only because those with advisors are more likely to also have accrued greater wealth over time — or will it also hold true for younger workers with smaller portfolios? A Kiplinger deep dive into the EBRI data suggests the advisory confidence “boost” is actually greatest among lower balance savers. In other words, professional financial guidance may have its most meaningful impact on younger workers in the early stages of their wealth-building journey. More than three in four Gen Z employees, those born from 1997 to 2012, are saving for retirement through employer-sponsored retirement plans and/or outside the workplace. Automatic enrollment trends play a role here. But prevailing generational sentiments have a large impact on behaviors too: nearly six in 10 Gen Z and Millennial 401(k) participants expect their personal accounts to be their primary income source in retirement, while only 5% anticipate relying mainly on Social Security. But saving — and saving enough — aren’t necessarily one and the same. And unfortunately, those falling behind the curve on retirement readiness may not even realize it’s happening. Meanwhile, many younger Americans are embracing the growing trend of “soft saving,” favoring quality of life today rather than delaying gratification and saving for future goals, such as retirement. Faced with heavy student debt, economic uncertainly and financial milestones such as homeownership feeling out of reach, some younger workers are choosing to prioritize travel, social experiences, and their mental health. Living in the moment, however, may come at substantial cost later on in terms of both mental well-being and quality of life in retirement if savings are inadequate. This is where an experienced advisor can make a significant impact on the trajectory of a young participant. Part of the mental health “boost” of soft saving may come from the avoidance of facing the realities and challenges of planning for a secure retirement. But avoidance will only provide relief for so long — and delays in retirement planning can be costly and difficult to recover from. By providing guidance, perspective, and personalized, data-driven strategies, advisors can help younger workers balance enjoying life today while preparing for tomorrow. Sources: https://www.investopedia.com/inside-gen-z-s-soft-saving-movement-are-they-trading-future-security-for-present-comfort-11831300 https://www.ebri.org/retirement/retirement-confidence-survey https://www.cerulli.com/press-releases/gen-z-and-millennials-expect-to-lean-on-401ks-over-social-security-in-retirement https://www.kiplinger.com/retirement/retirement-planning/financial-advice-and-retirement-confidence-by-wealth-level https://www.transamericainstitute.org/research/publications/details/four-generations-persevering-against-headwinds-uncertainties-prepare-for-retirement

The Problem: Cash Out Leakage and Lost Accounts American workers now hold an average of more than 12 jobs over the course of their careers. During job changes, many end up cashing out small 401(k) balances and not rolling them into tax-qualified retirement plans. Industry studies estimate this trend may be causing an annual savings “leakage” of more than $90 billion due to taxes, penalties, and the missed growth and compounding potential of those cashed-out dollars. “Forgotten” 401(k) accounts may also be slipping through the cracks, further undermining employees’ long-term financial wellness. Enter Auto Portability: Keeping Savings Connected to Their Owners To address the issue, members of the retirement industry are supporting an option called “auto portability.” A consortium of major recordkeepers launched the Portability Services Network (PSN) to automatically reconnect small retirement account balances with their owners’ new employer plans when they change jobs. The consortium’s intent is to have a process that is secure and easy for participants. Here’s how it works… If an employee leaves behind a 401(k) balance below a set level (typically $7,000), the network’s technology searches for that individual’s new employer plan and automatically rolls the old balance into the employee’s new plan account. Participants receive a notice and can opt out if they do not want the transfer. Otherwise, their savings automatically follow them to their next job. Participants pay a low, one-time fee (capped at around $30) when their account successfully transfers. Plan sponsors should conduct thorough due diligence to understand the terms, conditions, and implications of activating this option for their plans. Research estimates that if this new feature were adopted widely, it could preserve an extra $1.6 trillion in retirement savings over the next generation. By keeping those small accounts invested instead of being prematurely drained, even modest balances can grow over time and contribute to a more secure retirement. Sources: https://www.bls.gov/news.release/pdf/nlsoy.pdf https://psn1.com/news/press-release-portability-services-network-jumpstarts-nationwide-adoption-of-auto-portability https://rch1.com/auto-portability/frequently-asked-questions https://rch1.com/blog/the-triple-crown-to-unlock-retirement-security-for-all https://fcwpol.files.cmp.optimizely.com/download/302392d88afc11ef969f5ed37da10eba

Many Americans are rethinking retirement as financial pressures like housing, education, and caregiving compete for their savings. Discover insights from RPAG’s latest article on how shifting priorities are redefining the path to retirement—and what employers and advisors can do to help.

A new rule under SECURE 2.0 Act requires high-earning employees whose FICA wages exceed $145 K to shift catch-up contributions from pre-tax to Roth (after-tax) starting in 2026-27. This change carries major implications for retirement saving, payroll operations and plan-sponsor communications.

Target date funds remain an incredibly important and popular retirement plan option for advisors, sponsors, and participants. The latest evolution of our Target Date Fund Analyzer adds control and clarity to the TDF analysis process, so you and your clients can make even smarter, more confident decisions. RPAG held a webinar on the enhancements and you can find it here. Below are answers to questions you may have, to help you: Get up to speed on the enhanced Analyzer Bring more and better TDF insights to your clients Support your fiduciary processes and obligations What is new in Target Date Fund Analyzer 2.0? Key updates include: Enhanced risk band visualization – instantly see where a plan’s participant profile fits within RPAG’s risk spectrum Flexible question inputs – enter plan-specific data (e.g., savings rates and balances) for a more precise Fit Analysis New chart views – visualize glidepath risk, underlying fund scores, and peer comparisons Automated, customizable reports – generate client-ready reports in minutes Optional Misfit Risk Bubble Chart – determine how well different TDF glidepaths align with plans’ individual participants How can I access the new Analyzer? Select “TDF Analyzer” under the Tools menu. You also can access the Analyzer from the client plan page within your portal. Can I still view or use my old reports? Reports you have previously created are available in the “Saved Reports” panel for download. Analyzer 1.0 reports remain available for download but cannot be edited. To take advantage of the new visualization and input features, you will need to start a new report in the 2.0 environment. How does the Fit Analysis work? The Fit Analysis is the first step in the Analyzer’s three-part workflow. It helps you determine the glidepath risk level that best aligns with participant demographics and behavior. What is the benefit of inputting plan-specific data versus using “yes/no” inputs? We believe that specificity drives precision. By providing actual savings rates, account balances, and salary data, you can produce a more tailored risk index and better supporting fiduciary documentation. What is the Misfit Risk Bubble Chart? This new, optional module enables you to import individual-level participant data (e.g., date of birth, account balance, contribution rate, and salary) and generate a visual overlay comparing each participant’s optimal portfolio to multiple TDF glidepaths. This module can help illustrate how well each series fits for actual participants in your plan, versus having to derive fit from comparisons to generic benchmarks and averages. Can I use my own templates or layouts for reports? Yes. You can select RPAG’s standard template or use saved, custom layouts. With the drag-and-drop builder, you can incorporate modules including: Fit Analysis summary Series comparison and glidepath visuals Misfit Risk Bubble Chart Three- and five-year risk/return snapshots Returns by vintage and peer averages Can I add the Analyzer’s reports to my client’s Service Plan? Yes. You can link Analyzer-generated reports to client meetings and store them with Service Plan documentation, helping you ensure transparency and maintain a defensible fiduciary record. Can I export the visuals or include them in my committee presentations? Yes. You can export all key charts (e.g., risk bands, glidepath comparisons, and bubble charts) as PDFs and integrate those directly into meeting materials or investment policy documentation. Are the Analyzer’s results investment recommendations? No. The TDF Analyzer is a fiduciary documentation tool, not an investment recommendation engine. It can help you evaluate, compare, and present data objectively within a prudent review ecosystem and process. What should I highlight to plan committees when presenting the results? You can use the Analyzer’s reports and visuals to: Explain why a particular TDF risk posture fits a plan’s participant base Compare series based on risk posture, fees, and management style (i.e., active, passive, or blend) Document a repeatable, defensible fiduciary process for minutes and audit trails

Employers and advisors are joining forces to tackle financial stress, enhance retirement readiness, and make financial wellness a core workplace benefit.

The modern workplace is filled with distractions: phones lighting up, laptops open, messages pinging in the background. Even at the highest levels of leadership, this has become a problem. Recent reports from The Wall Street Journal highlight CEOs’ growing frustration with employees (and even peers) scrolling, texting, and emailing during meetings. J.P. Morgan CEO Jamie Dimon has called it “ disrespectful ,” while others have gone so far as to hide Wi-Fi passwords or fine distracted team members. Multitasking, especially in meetings with plan sponsor clients or internal teams alike, quietly erodes trust, clarity, and ultimately, could impact the retirement outcomes of your plan sponsors’ participants. However, the solution isn’t to police devices or ban technology altogether. Instead, it’s about designing meetings that are purposeful, structured, and worthy of attention. In other words: the antidote to distraction is not restriction, but relevance. Effective client service starts with human connection, and that begins with how we communicate internally and externally. To achieve that, advisors can rely on what workplace strategist Erica Keswin calls the Three P’s of Meetings: Purpose, Protocols, and Presence. Purpose: Why Are We Meeting? Meetings should never be habitual; they should be intentional. Before scheduling time on anyone’s calendar, ask: What do we need to accomplish together that cannot be done more efficiently another way? If the answer isn’t clear, the meeting might not be necessary. Consider replacing it with a well-crafted email, a shared document, or a quick message. This small discipline saves time and communicates respect for others’ priorities: two qualities that define excellent client service. Another key protocol is to share meeting materials, agendas, and any relevant background information with all attendees ahead of time. Consider sharing a proposed time block before a 30-minute call to align topics with desired timing. This allows participants to review content, formulate questions, and arrive ready to contribute meaningfully to the discussion. When everyone comes prepared, meetings are more focused, productive, and valuable for clients and advisors alike. For plan advisors, this is especially critical. Plan sponsors expect their advisor teams to use their time wisely. When every interaction has a clear purpose, whether it’s reviewing plan health, quarterly plan reviews, educating participants, or solving operational challenges, sponsors perceive value. Purposeful meetings help advisors demonstrate thought leadership, not just deliver data. In its “ Redefining Client Service: From Transactional to Transformational” client services primer , our affiliate Great Gray Trust Company reinforces this principle: clarity and consistency in communication are hallmarks of high-performing advisory teams. Every client touchpoint should be designed to advance understanding and decision-making, not just fill a slot on the calendar. Protocols: How Do We Meet? Once the purpose is defined, the how matters just as much. Protocols are the “rules of the road” that keep meetings efficient, engaging, and respectful. Establish no-screen zones. For internal strategy sessions or sensitive client discussions, designate meetings where phones and laptops stay closed unless needed for presentation or note-taking. Be intentional about format. Use video strategically for remote meetings to foster connection and accountability. Try stand-up or walk-and-talk sessions for shorter updates to maintain energy and focus. Respect time boundaries. Many of the best conversations happen within 30 minutes. If a topic consistently exceeds that, it may need restructuring rather than more time. These small cultural norms reinforce the professionalism clients expect. They also make meetings more dynamic, ensuring that every participant contributes rather than multitasks. Advisors who model disciplined meeting behavior send a subtle but powerful message: We value your time as our clients as much as our own. This discipline scales outward to client relationships, reinforcing trust and credibility. 3. Presence: Be Where You Are Finally, and perhaps most importantly, comes Presence. Attention is one of the rarest resources today. Attention is truly the new currency. When advisors give clients and colleagues their full focus, they signal respect, care, and competence. Presence builds relationships faster than any marketing collateral can. This aligns closely with the themes explored in our affiliate’s “Gray to Great” Humanizing Sales in Financial Services podcast featuring Sean Kelly . Authentic connection and deep listening aren’t soft skills; rather, they’re strategic advantages. Clients can tell when an advisor is distracted versus when they’re genuinely engaged. Similarly, during last year’s National Association of Plan Advisors (NAPA) Conference, Great Gray Group Board Member Dan Dal Degan led a standing-room-only session on how empathy transforms your sales conversations. This recap underscores that empathy begins with attentiveness. Advisors who are fully present can perceive not only what clients say but what they mean, inclusive of their unspoken concerns, priorities, and physical and emotional cues. Leaders play a crucial role in modeling this behavior. When advisors, team leads, or firm executives consistently show up with undivided attention, others take note. It creates a culture where presence is not optional, it’s expected. As Airbnb’s CEO Brian Chesky put it, he’s striving “not to look at his phone unless it’s an emergency.” That’s not about control; it’s about commitment from the top down. And people know when you’re really listening. The Last Word Distraction is easy. Presence is rare. The next time you step into a meeting, whether it’s with your internal team, plan participant , or a plan sponsor client, leave the phone face down, close the laptop, and bring your full self to the conversation. You may find that what seemed like a routine meeting becomes an opportunity to build deeper trust and deliver greater impact. As Redefining Client Service: From Transactional to Transformational reminds us: Client service excellence starts with intention and thrives on attention. For more practice management articles, bookmark Insights for Advisors here. Retirement Plan Advisory Group, LLC (“RPAG”) provides technology, solutions and services for a fee to its customers, who are primarily retirement plan advisors and associated institutions. The services include ratings of various third-party investment vehicles based on RPAG’s proprietary quantitative and qualitative scoring methodology. The investment vehicles do not pay to be evaluated and scored; nor do the companies that provide services to the investment vehicles pay for them to be evaluated and scored, but those companies may have commercial relationships and affiliations with RPAG.  Great Gray Trust Company, LLC (“Great Gray”) serves as trustee and provides administrative services for collective investment trust funds (“Great Gray Funds”) that are scored by RPAG. Great Gray and RPAG are wholly owned by Great Gray Group, LLC. Great Gray has a commercial relationship with RPAG that does not involve the evaluation and scoring of Great Gray Funds.

As holiday spending ramps up, discover three practical strategies to enjoy the season without compromising your financial wellness — budget smart, pay intentionally and save creatively.