Speaker Q&A Directory

The One Minute Retiree™
Computer-based models for retirement plan advice have become popular since the federal government suggested guidelines for advice in employer-sponsored 401k retirement plans in 2006. Yet many employees remain confused, some keeping all their retirement savings in cash. Skip Massengill, founder of the Retirement Education Institute, CREdu™, offers perspective on the need for more unbiased retirement education in the workplace.

Q: What is your session about?

A: We'll be talking about what employers must be doing in line with the Pension Act of 2006, which is still, effectively, being contemplated in 2010. We'll discuss what employers should be bringing to employees to broaden their awareness surrounding their 401k and retirement plans.

Q: The Retirement Education Institute is conducting a poll with Benefitnews.com about perspectives on retirement education in the workplace. Can you tell us about that?

A: We are collecting additional data points for a white paper we are researching. There are two polls. The first will be sent to financial planners and advisers. The second poll is going to your readers, the benefit professionals. The five questions are about the extent to which employees understand the basics of investing or what has become known as "financial literacy."

Q: Why are you conducting separate polls?

A: We believe the responses from advisers and planners will be different than those from human resource and benefit professionals. Advisers are likely to express a different understanding of the employee’s perspective, because they aren't the ones answering to the U.S. Department of Labor or getting questions from the employees.

Q: Knowing there's a need for retirement education, what can an employer do?

A: The employer has to seek out different services to educate employees specifically around their plan. Most 401(k) plan sponsors offer group meetings and some education, but it's usually a brown bag lunch once or twice a year or calculators and call centers, with little follow up.

Q: What would be the components of a robust educational plan?

A: Employers need a systematic approach that involves web training, personal coaching, and one-on-one discussions in which the employee can feel comfortable asking basic questions. We'll discuss emerging models for this in the session that can help companies help their employees.