How Do You Know If Your Retirement Plan Is a Success?
…..it depends on who you ask.
The company, the owner, and the HR director all focus on the quantifiable criteria: fees, investment quality, and fiduciary responsibility. These criteria are easy to control and should be a foregone conclusion. Surprisingly, they are not. Too many plans go unattended for extended periods of time.
Yet, the most important measure of success in a retirement plan is not the above mentioned criteria, but the employee’s ability to retire on their savings and investments. Less than 20% of all participants nationwide will be able to live on their 401k assets when they reach 65 years of age. This massive failure can be attributed in large part to those that have the ability to affect the participants on an individual basis.