Five Reasons to Review Your Retirement Plan Now

These five reasons highlight the importance of periodic reviews.

1. Stay Compliant With Ever-Changing Regulations

Regulations governing retirement plans are extensive and subject to frequent updates. Failing to stay compliant puts your organization at risk of penalties and litigation. Regularly reviewing your retirement plan helps you remain up to date with the latest legal requirements to protect both your business and your plan participants.

2. Ensure Plan Fees and Costs are Fair, Reasonable, and Transparent

One of the main claims against retirement plan sponsors is excessive fees for investments and related services. Evaluating the fees and associated costs should be a top priority. Benchmarking these expenses against the marketplace is important to ensure the fees are clear and not excessive or unreasonable.

3. Enhance Your Plan’s Performance

Financial markets, investment options, and economic conditions evolve over time. By reviewing your retirement plan, you can assess fund performance, make essential adjustments, and potentially identify more suitable investments.

4. Assess Plan Design and Employee Participation

As your business evolves, so should your retirement plan. Reviewing your plan lets you assess its design and determine if it aligns with your business goals and objectives. Evaluating additional aspects of the plan, such as participation rates, obstacles to engagement, alternative funding formulas, and more, enables you to implement new strategies that can lead to a more successful plan.

5. Address Changing Workforce Demographics

The workforce is evolving, with diverse demographics and varied retirement needs. Regularly reviewing your retirement plan enables you to align the plan to these changing demographics by offering customized investment options, education, and retirement planning resources.