Voya Releases New Whitepaper Providing Plan Design Changes for Employers During Challenging Times

Voya Financial, Inc. (NYSE: VOYA), is releasing a new whitepaper from its Voya Behavioral Finance Institute for Innovation that provides employers with actionable insights to help individuals get back on track with retirement savings in light of the COVID-19 pandemic and associated economic crisis. In the new paper titled “Plan design during challenging times: 7 Actionable Insights from Behavioral Finance,” Dr. Shlomo Benartzi, UCLA Anderson School of Management professor emeritus and a senior academic advisor to the Voya Behavioral Finance Institute for Innovation, examines several retirement plan design considerations for employers that can significantly help improve the financial security of American workers today.

According to research from Voya, the percentage of retirement participants with a positive retirement sentiment fell by 13 points in March 2020, from 74% to 61%.¹ And just as sentiment declined, industry data reported that approximately 20% of retirement plans with a contribution match considered eliminating or suspending it to save on costs.² While the good news is that retirement outlook has since improved — Voya’s latest data shows 76% of participants reported a positive retirement sentiment in December — it is becoming increasingly clear that the pandemic may have a lasting impact on retirement outcomes for many individuals.

“There’s no denying that COVID-19 has created financial challenges for American workers and companies alike, but as a result, employees are seeking greater support from their employers in helping them to address their health and wealth needs,” said Charlie Nelson, CEO of Retirement and Employee Benefits for Voya Financial. “And while many individuals have had no choice but to withdraw funds from their retirement savings, there are many opportunities for employers to implement solutions that can help individuals get back on track, starting with small changes to the design of their retirement plan program.”

Specifically, the new whitepaper outlines seven actionable changes that employers can make to their retirement plans to help employees accumulate savings once the current hardship is over. While many individuals might need access to their hard-earned nest egg now, withdrawing funds from one’s retirement savings will require saving even more to help achieve a secure financial future. As a result, employers have an opportunity to help. Among the actionable plan design considerations, some of the key changes include: