What do you get when you pair health plan open enrollment with changes to your 401(k)?
If you guessed better participation, you’re correct — at least when it comes to your retirement plan.
Providing employees with a single-click option to participate or change contributions — during your annual health plan enrollment period — can nab you a serious uptick in 401(k) participation, found new study by Bank of America Merrill Lynch.
The study showed employers can see 11% year-over-year increase in the number of employees making a change to their retirement plan election when 401(k) activity is connected to a health care open enrollment period.
A more impressive stat: 93% of those election changes were positive — meaning employees started or increased contributions to a plan.
The catch? To see results like this the changes have to be easy for employees to make — involving not much more than a single click.
It’s not as technologically elaborate as you may fear. Many brokers can link 401(k) choices with other open enrollment features relatively painlessly.
It’s worth investigating.
During your free trial, you can cancel at any time with a single click on your “Account” page. It’s that easy.
