With the increasing number of people owning smartphones and tablets these days, many plan sponsors are considering using mobile technology to reach plan participants. Here’s an article from Limra.com that discusses this trend.
Two-thirds of defined contribution (DC) plan providers have launched mobile initiatives focused on plan participants, with more companies planning them, according to a new LIMRA research report, Moving Ahead With Mobile: Mobile Technology Initiatives Among Defined Contribution Plan Providers (2012).
Why does this matter?
At the end of third quarter 2012, employer- sponsored DC plans — including 401(k) plans, 403(b) plans, 457 plans, and other DC plans — held an estimated $5.0 trillion in assets.1 Retaining these assets is one of the top priorities for plan providers. LIMRA’s 2012 Asset Retention report found that eight in ten retirees and pre-retirees either left their assets in their retirement plan or rolled them over into an IRA. (chart). The study found that about half of individuals who left their money in their existing retirement plans and had decided to keep it there had a strong relationship with their plan providers at the time they left their employers. In addition, our research shows that “active” contact methods — traditionally defined as phone or in person — are more effective than passive such as postal mail or email for retaining assets.
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