"However beautiful the strategy, you should occasionally look at the results."
- Winston Churchill
We are excited to provide you with the inaugural issue of our monthly newsletter for consultants, Inflection Points. We will publish this electronically on the first Friday of every month.
Financial Soundings believes the defined contribution world is at a key juncture. Plan sponsors are increasingly turning their emphasis from governance, expense analysis and investment monitoring to holistically managing their plan. There is heightened appreciation for and awareness of measuring and monitoring participant behavior and outcomes. Fiduciaries are tumbling to the fact that it is not enough to just design the plan. They must oversee the realities of how the employees are using the program and what that use means to people in terms of retirement income and a fulfilling retirement. To use a housing metaphor, having a completed blue print of your trophy home is wonderful, but your dreams won't come true until it is built, you have moved in, and are enjoying the fruits of your labor.
This month's edition of Inflection Points pertains to Deloitte's recent annual survey about retirement readiness. We have provided a link below to a pdf of the full report and have included our excerpts pointing you to key parts of the document.
Deloitte 2010 Retirement Readiness Survey - Full Report
Deloitte Retirement Readiness Highlights
Simply put, retirement readiness is a topic on which corporate America is focused. Indeed, it is one of the top subjects to be addressed this coming year by many businesses. The topic will not fade from view because, if for no other reason, sponsors know that the majority of employees are not prepared for retirement. This fact has profound implications for long-term corporate profitability and our country's social cohesion. Additionally, most companies are acknowledging that they have not assessed the retirement readiness of their workforce.
You will be asked to assist the benefit committee, and the stars are aligned for retirement readiness to be at the top of the agenda. Financial Soundings has unique resources for complimenting your practice with retirement readiness advice and counsel.