How do you know if your ministry retirement plan is on track? Do you need a quick way to make sure that it is headed in the right direction?
Here is an easy formula to check your retirement plan against. It’s called the 90-60-10 milestones.
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
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.
Here are several actions you can take for a better retirement plan:
An online virtual advisor can help your employees discover their risk profile and help them to select their investment choices.
Encourage higher deferral rates.
Offer your employees an automatic deferral escalation program.
Educate your employees.
Give your employees retirement education so they can be fully equipped to begin a successful savings plan.
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.