Retirement Education in the Workplace

OVER THE LAST several years we have seen some major changes in the retirement marketplace. As investment professionals, we have a responsibility to help address the savings shortfall many Americans are facing in retirement. As the retirement landscape shifts and the onus is on employees to take more responsibility for saving for retirement, more emphasis is being placed on employee education than ever before.

However, for many plan sponsors, trying to get all employees together for a seminar in one room at the same time can be a headache. The problem is only magnified if the employee population includes people who are field-based or work from home, spread out across multiple locations, or have hectic work schedules. How can we expect to educate and positively impact our audience so that they are better prepared to make decisions concerning their retirement if we are missing so many of them during face-to-face meetings?

The answer may lie in technology. Through the use of web-based applications, employee education can become more effective and efficient in assisting employees with their retirement readiness. This also results in a broader reach – you can touch as many employees as you want. Any employee who has access to a telephone and a computer can participate in a Webinar regardless of their geographic location. Since there are no travel considerations on the part of the presenters, meetings can be held several times over various days or “on-demand” to accommodate employee work schedules. This makes web-based education not only a cost effective way to reach out to plan participants, but it also allows greater flexibility for participants. This flexibility in scheduling allows employees to choose to attend the webinar that best fits their schedule. With this flexibility comes the potential for increased attendance.

Many participants also like the anonymity that this type of setting offers, enabling them to feel more at ease to ask questions or address concerns than in a larger setting with their colleagues. The meeting provides a convenient, interactive, engaging way to learn more about making the most of a workplace savings plan. After attending a meeting they will potentially be better informed and motivated to take the necessary steps to enroll, increase contributions, or reconsider their current asset allocation. In fact, all the data we’ve tracked regarding employee changes strongly suggests that employees who attend online education seminars are more likely to make positive changes regarding their retirement decisions. ¹

Lastly, 401(k) plan websites are becoming increasingly important in the industry as the “one-stop-shop” for employees and plan sponsors alike to view and manage their accounts. What better way to transition to a company’s website than to have a captive audience already at their computer and prepared to take action.

¹ Information obtained in a study of 799 attendees of enrollment meetings from 26 separate Fidelity

Advisor 401(k) plans from 6/26/2007 through 9/21/2007

At Fidelity Advisor we have begun to proactively offer online education to our investment professionals and plan sponsors, as an alternative or in addition to face-to-face meetings. Our industry is in a constant state of change and in order to be successful we need to be more flexible. The education of plan participants is no different. We need to keep an open mind when considering the most effective medium for an audience. Ultimately the success of a plan will not be decided by how often we are on-site, but rather on how well we’ve provided the tools and strategies necessary to assist with making informed decisions regarding retirement planning.

For more information regarding this educational opportunity from the Fidelity

Advisor program please call us at 1-800-684-5254.

For investment professional use only.

Not NCUA or NCUSIF insured. May lose value. No credit union guarantee.

Not FDIC Insured 􀁹 May Lose Value 􀁹 No Bank Guarantee

Before investing, have your client consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus containing this information. Have your client read it carefully.

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