What if you could view your estimated monthly retirement income online -- and use simple “sliders” to see how changes in your contributions, investment return and retirement age will impact your monthly check?
That’s precisely what’s now being offered to defined contribution plan participants through record-keeper Voya Financial, the former ING U.S.
A recent sample of 100,000 participants at 10 retirement plans Voya looked at found that these employees increased their online plan interactions substantially -- and made meaningful changes -- when monthly income became the focus, instead of total balances.
In fact, of those who logged into their account and viewed Voya’s myOrangeMoney, a platform for showing future monthly income, 55 percent engaged with it in some manner.
“Just confronting participants with their overall balance is something most individuals find hard to translate,” says Maliz Beams, the CEO of Retirement Solutions for Voya Financial.
The online platform is meant to be more simple and straightforward than what participants have viewed in the past. Employees can pull up a slide showing a shaded dollar displaying monthly income drawn from:
• Their retirement savings account balance;
• Social Security;
• Their traditional pension plan, if they have one;
• Other assets they cite; and