Generic Advice Costs More Than You Think
Generic financial advice is a great start. It offers broad principles and helpful rules of thumb that can point employees in the right direction. But when it comes to retirement planning, “good enough” advice often leaves too much on the table.
Through tailored 401(k) education, we can take that starting point and make it so much better—by delivering guidance that reflects your specific plan, your workforce, and the real-life goals employees are trying to reach.
Generic vs. Personalized Advice – What’s Right for You?
3 Problems With One-Size-Fits-All Advice
When employees rely solely on general guidance, they miss out on the power of personalized planning. For example:
- It Doesn’t Know Your Plan’s Details
Most generic advice assumes a plain-vanilla 401(k). But your plan may offer Roth contributions, after-tax options, automatic escalation, or a profit-sharing component. If employees aren’t aware of what’s actually available to them, they can’t make the most of it.
- It Can’t Adjust for Life Changes
Generic guidance assumes a steady path: save a percentage, invest long-term, retire at 65. But real life is dynamic. From family decisions to career pivots, employees’ goals change, and their retirement strategies should evolve with them.
- It Can Lead to Costly Missteps
Without targeted education, employees may over-borrow from their accounts, overlook matching opportunities, or miss key deadlines for contribution increases and catch-ups. These missed opportunities can add up over time.
Personalized Education Unlocks the Plan’s Potential
As 401(k) plan advisors, our role goes beyond plan administration. We help employees truly understand the options available in their specific retirement plan, and how to apply them to their personal goals.
We provide:
- Clear, relevant education about your actual plan design and features
- Real-life guidance for decisions around contributions, loans, distributions, and more
- Support for changing priorities, whether that’s early retirement planning or balancing short-term needs
Better Advice = Better Outcomes
Generic advice may be free, but the consequences of missteps can be expensive. Personalized education doesn’t just inform—it empowers. Employees make more confident choices, and employers see better engagement with the retirement benefits.
Let’s Turn Education Into Action
When employees understand how to navigate their retirement plan, they’re more likely to use it effectively.
Let’s move beyond generic advice and provide education that is:
- Practical
- Personalized
- Specific to the plan they’re enrolled in
How Education Informs Smarter Plan Design for Employers
Education not only empowers employees but also gives us insight into their demographics, financial behaviors, and retirement goals.
With this knowledge, we can provide more strategic plan design guidance to employers, including:
- Adjusting eligibility or entry periods
- Enhancing employer match formulas
- Offering Roth or after-tax contribution options
- Tailoring automatic features like escalation or re-enrollment
Aligning the plan with the needs of the workforce improves participation, satisfaction, and long-term retirement outcomes.
Looking to bring better retirement outcomes to your team? Let’s start a conversation.
Disclaimer: The information provided is for educational purposes only and should not be considered tax or legal advice. Please consult a tax professional or attorney for advice regarding your individual situation.
