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It’s a year of change, and that includes within the world of corporate retirement plans. Regulatory updates, technological advancements and a shift in employee expectations have made it necessary to reshape the scope of the retirement landscape. To stay ahead of what’s coming, it’s important to understand the most significant trends coming down the line, both for 2025 and beyond.
The changes from the SECURE Act 2.0 – passed in 2022 – are still continuing to impact the retirement guidelines on an ongoing basis. It’s a good time to review the design of your plan to make sure you’re up to date with the newer compliance standards, and make changes that benefit your plan accordingly. Changes to consider:
The lightning speed of digital advancements allow for a system more streamlined, empowering participants to be more engaged in their retirement planning while offering a more personalized experience. This is a good time to reach out to your retirement plan provider to find out what digital-based tools are being offered. If you find that they are lacking in modern technology, it might be worth exploring alternatives. When it comes to improved digital planning in 2025, expect to see:
With a shifting perspective on work/life balance, it’s important to follow the trend of focusing on the overall wellness of the employee. Employees that are overly stressed due to finances risks being less productive, less engaged and less committed to their position. Survey employees to find out what financial challenges are prevalent and consider those results when choosing a retirement plan provider. Employees could benefit from financial wellness tools such as:
Many employees – especially in the younger generation – are looking to align their finances with their values, and that includes their investments. Due to this, Environmental, Social and Governance (ESG) Investing is becoming more of a standard option in defined contribution plans. While a great premise on the surface, ESG investments can be complex
so it’s important to work with advisors well-versed in the legal and fiduciary elements of the potential options.
Employees are looking for options and flexibility, something that retirement plans are taking into consideration. If you’re unsure if you’re hitting the mark compared to other employees, take time to review the features of your plans, especially compared to your industry peers. The structure of plans are being reimagined with elements such as:
Modern tools make it easier for plan sponsors to recognize gaps for a chance to proactively address them. Keep up with the changing times by measuring more than just employee participation. To make sure your plans are up to par, use tools to track:
Compliance is always a top priority when it comes to corporate retirement plans, but for 2025 and beyond it’s about much more than that. Use the time reviewing new regulatory requirements to consider the evolving needs and desires of employees, considering strategy, personalization and proactive planning. Powerful technology advancements, a transformed employee mindset and regulation updates can transform retirement plans from a benefit to a company advantage.
If you’re looking for help navigating these changes, PlanPerfect would be happy to help! Schedule a consultation with our retirement plan experts to discuss how these trends can impact your company. Don’t forget to download our free guide, “Future-Proofing Your Retirement Plan” for actionable insights to help take your strategy to the next level.
