In a recent article on PLANSPONSOR titled 403(b) Participation Rates Reach Record Highs, but Savings Results ‘Still Not Great’  Kim Cochrane, Director of Client Services for HUB Retirement and Wealth Management – Rockville, MD, shared her thoughts on 403(b) plan participation and the correlation to savings rates for participants and how this can be improved as we continue to look for ways to strengthen retirement readiness.   

This article discusses the reality that although 403(b) plan participation has greatly increased, in part due to auto-enrollment and other plan design features, that doesn’t necessarily mean retirement readiness is increasing as well. While increased participation is great and the first step in improved retirement preparedness, continued education and encouragement towards saving more is a key for success.  

Kim talks at length about the importance of individualized education that allows employees to feel that financial wellness is accessible to them. The key is continuing to educate them [employees] about how they can save more and the importance of doing so for retirement. But this education must be “paternal or maternal” in nature, Cochrane mentions, so that employees don’t feel they’re being talked down to but instead are genuinely encouraged to make the changes they need. The article also explores the statistics around increased participation, what has caused this improvement, and what can be done to continue to see this positive upward trend in the future.  

“Individual outreach is the only way we’re going to get there as an as a nation or as an industry. One-on-one consultation has been the single best success we have found with helping every employee.”

– Kim Cochrane, Director of Client Services for HUB Retirement and Wealth Management – Rockville, MD

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