The data for the analysis was generated as of end-of-year 2014 by a suite of tools available through
Plan sponsors that participate in the program receive a detailed analysis of their retirement plan's overall health – known as the PlanSmartSM Analysis -- as well as prescriptive solutions for improvement, according to
Although PlanALYTICS reports that 54.4 percent of plan participants are on target for retirement, the percentage could rise to 69.4 percent if employers incorporate plan design changes such as automatic enrollment and automatic deferral increases, and encourage savings by matching employee contributions, according to Morabito. Sponsors that incorporate those improvements typically show improved outcomes over time based on
- Deferrals increased 17.1 percent for participants enrolled in PlanALYTICS compared to 1.1 percent for those not enrolled in the program.
- Retirement savings increased 33.8 percent for those enrolled in the program compared to 15 percent for those not enrolled.
In addition, PlanALYTICS sponsors were more likely to feature automatic enrollment than sponsors that did not (57 percent vs. 18 percent) and were more likely to rely on automatic deferral increases (30 percent vs. 11 percent). Other improvements included incorporating target date funds and implementing focused employee communications such as direct email and mail campaigns, group seminars and one-on-one education, according to Morabito.
Among sponsors enrolled in PlanALYTICS, those that offered both automatic enrollment and automatic deferral increases reported that the percentage of income contributed by participants to their retirement plan was twice as high as sponsors that did not offer those automatic features. The average participant account balance for plans with automatic features was 61.4 percent higher than those without automatic features.
"PlanALYTICS is an important tool for plan sponsors to manage the effectiveness of their retirement plans," Morabito said. "When you combine the analytical data with prescriptive design enhancements and action steps, retirement plan sponsors and participants can realize real improvements over time. It's all about retirement readiness."
For more information about
Founded in 1851,
For more information, visit www.massmutual.com or find
Copyright ©2015 Massachusetts Mutual Life Insurance Company (
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/massmutuals-planalyticssm-promotes-improvements-in-retirement-plan-design-retirement-readiness-300112880.html
SOURCE MassMutual Retirement Services