b'Headline St oryPandemic Heightens Needs for Retirement PlanningCOVID-19 highlights roles for emergency savings and lifetime incomeThe COVID-19 pandemicby Edelman Financial Engines, a provider of has wreaked havoc,financial advice. More than a quarter of the even on retirement2,000 respondents? who were ages 40 to 65 plans. While theand had annual household incomes over Coronavirus Aid, Relief$100,000? made early withdrawals from and Economic Securitytheir retirement plans due to the pandemic. (CARES) Act providedThey said they expect it will take six years to important financialregain those funds.relief by allowingWhen employees feel compelled to raid their By Joanne Sammer people to withdraw or401(k)s, it\'s a sign that they need help borrow more moneyplanning for financial emergencies. from their retirementAccording to a Voya Financial study of 63,000 plans without penalty, the negative effect ofretirement plan participants, individuals these withdrawals on future retirement incomewithout an emergency fund that is equal to at is likely to be significant. least three months of living expenses were Given the ongoing volatility in the financial13 times more likely to take a hardship markets, chances are good that planwithdrawal from their retirement plan than participants\' needs will keep changing. Thethose with a fully funded emergency fund.challenge for employers is to find ways to make"If employers can help employees establish sure retirement planning feels accessible andan emergency fund with liquid assets that relevant to employees. they can use in the short term, that can help In the best of times, "retirement planning is anlead to greater retirement fitness in the long intimidating topic," said David Fairburn,term because employees will be less likely to associate partner in retirement solutionsuse their retirement plan assets for those practice with consulting firm Aon in Los Angeles.needs," said Jeff Cimini, senior vice president "Employees have more immediate concerns, andof retirement product management at Voya it can be hard for them to take action if the topicFinancial in Windsor, Conn. To encourage feels too overwhelming." participation and savings, employers can Here are four areas where retirement planningoffer access to emergency savings accounts experts advise fresh thinking to help workersfunded through payroll deductions and save for their golden years. provide an incentive to participate, such as offering to match a certain amount of Help employees save for emergenciesemployee contributions to these accounts.and retirement Leverage all available tools and The pandemic showed how at risk retirementresourcesfunds are, as financially strapped retirementThe first place to look for retirement planning plan participants withdrew money from theirsupport is existing retirement plan vendors. 401(k) plans to pay their bills. Employees whoDigital financial platforms, education, earn good salaries but have limited savings alsobudgeting guidance, emergency savings borrowed from their plans, according to a surveyaccounts and financial wellness resources www.ohiomasonry.org 4'