b'Business Managementbut have limited savings also borrowed from theirfinancial wellness resources can all help start plans, according to a survey by Edelman Financialthe conversation about retirement planning and Engines, a provider of financial advice. Morehow it fits into the employees overall finances. than a quarter of the 2,000 respondentswhoIdeally, any advisors or coaches would incorporate were ages 40 to 65 and had annual householdtheemployersbenefitofferingsintothese incomes over $100,000made early withdrawalsdiscussions. from their retirement plans due to the pandemic. They said they expect it will take six years toThe key is to start regain those funds. theconversation When employees feel compelled to raid theira n d h e l p g e t 401(k)s, its a sign that they need help planning for financial emergencies. According to a Voyaemployees on the right path. Financialstudyof63,000retirementplan participants, individuals without an emergencyThe advice can be tailored to the benefits that are fund that is equal to at least three months ofavailable to the employee in addition to general living expenses were 13 times more likely to takeeducationaboutfinancialissues,Fairburn a hardship withdrawal from their retirement plansuggested. The key is to start the conversation than those with a fully funded emergency fund. and help get employees on the right path.IfemployerscanhelpemployeesestablishAutomaticretirementplanfeatures,suchas an emergency fund with liquid assets that theyautomatically enrolling new hires into the plan can use in the short term, that can help leadand annually increasing the percentage of pay to greater retirement fitness in the long termworkers contribute, can also ease the decision-because employees will be less likely to use theirmaking burden on retirement plan participants.retirement plan assets for those needs, said JeffThe role of the employer is to be the biggest Cimini, senior vice president of retirement productcheerleader for retirement planning, Cimini said. management at Voya Financial in Windsor, Conn.Plan designs like auto-enrollment can lead to To encourage participation and savings, employersmuch higher participation rates and makes it can offer access to emergency savings accountseasier for participants to reach their retirement funded through payroll deductions and provide antargets for total savings.incentive to participate, such as offering to matchFocus on Health Care Costsa certain amount of employee contributions to these accounts. As employees approach retirement age, they Leverage All Available Tools and Resources will need specific information and guidance on critically important topics, such as retiree health The first place to look for retirement planningcare costs. Consider these relevant issues:supportisexistingretirementplanvendors. How can employees plan for health care costs Digital financial platforms, education, budgetingduring retirement?guidance,emergencysavingsaccountsand Continued on page 40www .mrca .orgMidwest Roofer 39'