A quick look back in history suggests that determining where you are and how long it will take to get to your destination has always been important.
The Romans put up obelisks and we put up signposts and markers on our highways. Did you know that there are always signposts and milestones to help you determine if your retirement plan is headed in the right direction? These 3-milestones are 90, 60, and 10.
What are the 90-10-60 milestones?
90% plan participation
10% contribution rate from all sources
60% of your assets in professionally managed accounts
Unfortunately, the national averages are quite different.
77% plan participation
6% contribution rates
and only 15% of assets in professionally managed accounts
These results help explain why many Americans have a negative savings rate and why most are not saving enough for their retirement.
How does your plan measure up? What changes can you make to improve your plan? An excellent retirement plan design and an extensive education program will actually help you to reach those milestones of 90-10-60.
So here are several actions you can take:
A virtual advisor can help your employees discover their risk profile and help them to select their investment choices - all of them done online.
Encourage higher deferral rates.
Offer your employees an automatic deferral escalation program.
Develop a strategy by working with a great support team.
When you reach these milestones of 90-10-60, it's time to celebrate. You'll have a very successful retirement plan and one that helps your employees save for their future.