Fall Season: Getting Ready for 2024
A lost iced coffee at the beach.
We gave you a lot to think about in our last edition – with focus areas ranging across the spaces of legislative advocacy, financial expertise, and tech innovation. And we promised you a little bit more.
With the nip of fall in the air, we are looking forward. It’s conference season, so we’ll see you out and about. And as you are sharing social moments with colleagues, thinking creatively about the future, we’ve got you covered.
Whichever seat you occupy, we’ve compiled a view of some of the things you can be considering, connected to your role in expanding retirement savings access and use this fall and into 2024. Here are three good ideas to get you going.
Collaborate with Employers:
This might be your main line of business – you might think of it as sales. And really, you’re increasing access to retirement savings by offering terrific services to employers who need your expertise.
Bone up on tax credits – from the IRS to you: Eligible employers (100 or fewer employees) may be able to claim a tax credit of up to $5,000, for three years, for the ordinary and necessary costs of starting a SEP, SIMPLE IRA or qualified plan (like a 401(k) plan). That’s nothing to sneeze at, and probably covers the cost of what you offer.
Bone up on tax deductions = employers deduct matching contributions made this year, and profit sharing contributions made through October of 2024.
Provide employers with resources and support to educate their employees about the importance of retirement savings and how to participate. You’ve got great stuff. And our friends at CNBC put their finger on the pulse this year, saying, “Research shows that employees who have had access to financial education and tools, including videos, classes and coaching, are more likely to increase savings, feel less overwhelmed by debt and make progress toward their financial goals.”
Diversification in our Beloved Financial Services Industry:
Speaking of great materials … if you want to reach me, talk to me in a way that resonates – that shows you’ve walked in my shoes and you’re a good guide. We like the approach taken at OfColor, led by CEO Yemi Rose. And you can think about how these ideas work in all of our communication – it’s time to lighten up on the stiff stuff and get in our users’ walks of life.
We’ll be better and stronger together when we more completely represent all of the communities we serve. In a time of headwinds, it’s even more important to promote diversity within our industry. We’re doing better, but we’re not all the way there yet. We like industry-wide recognition events like the Diversity, Equity and Inclusion Awards program at DCIIA. And guess what – your next hire or promotion is right here. And here. And here.
D&I happens where you are. Or not. Let’s challenge ourselves to think creatively from each of the seats we occupy.
Research and Data Analysis:
Do you like data? From your seat conduct and support research to understand the barriers to retirement savings in different communities and develop targeted strategies to overcome them. Here’s some of the recent work we like – let’s keep building on it:
Nontraditional Workers Face Multiple Barriers to Saving for Retirement, Pew Charitable Trusts, November 2021.
Growing Disparities in Retirement Account Savings, US Government Accountability Office, August 2023.
Bankrate’s 2023 annual emergency savings report, Bankrate, June 2023.
2023 Retirement Confidence Survey, EBRI with Greenwald Research, April 2023.
Still Shortchanged: An Update on Women’s Retirement Preparedness, NIRS, May 2020.
The Collaborative for Equitable Retirement Savings – research under way analyzing anonymized participant data to understand outcomes by demographic in US retirement plans. Initial findings anticipated shortly.
Data like this helps to identify trends and gaps in retirement savings – with roots in access, income, financial expertise, and more. In 2024 let’s use this information to inform policy and program development.
And, it’s not all bad news – our system is a good one that works well for many. With data, we can make it work much more effectively for many more.
We’ve got more great ideas, but this, and these, have probably given you plenty to think about.
You’re an important part of future solutions. Grab one last sip of that iced coffee and get out there and make things happen.
Retirement Security Matters.
Lisa
This piece was also featured in the September 7, 2023, edition of Retirement Security Matters. For more fresh thinking on retirement savings innovation, check out the newsletter here.
