How COVID-19 is affecting retirement plans overall
Employers are adapting plans and communications strategies in response to the pandemic
Like many other aspects of our lives, employees’ confidence in their retirement plans has undergone rapid change due to the COVID-19 pandemic. To understand how employers’ priorities have shifted, we surveyed users of the Empower Retirement platform in mid-April about any adjustments they might be making to their plans or to their communications with employees.
The survey’s findings uncover key differences between the way larger employers with retirement assets greater than $50 million are dealing with their crisis compared with their smaller, more entrepreneurial counterparts. However, employers of all sizes are seeking additional support from advisors in key areas, such as understanding regulatory changes related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act and supporting their efforts to communicate with their employees.
- Smaller employers have been less likely than larger employers to make changes to their retirement plans in response to the pandemic.
- Smaller employers are also less likely to implement loan or disbursement provisions related to the CARES Act than larger employers.
- Larger employers are fielding more retirement-related questions from their employees compared with smaller employers.
Latest Empower Institute Articles
As the latest insight from Empower suggests, government retirement plans are doing their best to fight COVID fatigue, too.
Data shows most plan participants want to avoid taking money out of their retirement accounts.
Employers can better understand workers’ needs by studying their past experiences and personal backgrounds.