2 ways you can help them sock away more for retirement

Sure, you should expect your 401(k) provider to deliver results. But there are plenty of things you can do in-house to ensure your staff gets the most from their retirement plans.

Here are two tactics you can use to help employees bolster their retirement savings:

1. Restructure your match. The average 401(k) match gives employees around 50 cents for every dollar they contribute up to the first 4% of their pay.

But at that rate, most workers probably won’t save enough to retire comfortably. Another option: Make the match lower when workers start saving, then raise it every time they bump up their contribution rates. This will give employees an incentive to sock away more money.

3. Show projected outcomes in terms of monthly retirement income. Many employers encourage workers to save by telling them, “You’ll have $1 million in savings if …” The problem is that amount represents everything they will have to live off of for the rest of their lives. And most people don’t have a clue how that number translates into monthly income.

To give workers a clear picture, offer financial calculators that project both the total account balance and the monthly income that’ll result from their current savings rates.