The Participant Effect
Positioning your plan for success means much more than just providing options to benefit your employees and your business. The fact is, even when optimal plans are offered, many employees fail to join voluntary defined contribution plans. Those who do tend to save too little, and their investment elections are often questionable.
For your employees, this can mean they won’t be able to retire on their own terms. For employers, this can mean exposure to high health insurance rates, unnecessary fiduciary risk and potential litigation.
That’s why FiduciaryFirst leverages the power of The Participant EffectSM —our dynamic program that can help improve participant outcomes and offer appropriate strategies for employers and their employees
The power of behavioral science
The Participant EffectSM uses the field of behavioral finance to analyze why employees don’t always make the best decisions, and provides specific steps employers can take to make their plans more effective.
Behavioral finance looks at the psychological obstacles—including inertia, loss aversion, and myopia—that often prevent employees from making decisions that are in their best interest and works to turn these psychological weaknesses into strengths.