Let us help you – data is key!

Our data analytics capabilities can provide you with the insights you need to address workplace savings challenges. As a result, you can make meaningful plan design changes. Data analytics substitutes intuition with facts. It lets you make informed decisions and understand whether proposed changes will have the desired impact on your workforce. It’s a powerful tool.

Client case Study

 

In 2019, we worked with one of our large manufacturing clients to help them measure and improve their membership’s ability to retire on time. The sponsor was concerned about high withdrawal rates. Our analysis used some additional salary and contribution data along with information we already had about the plan. We uncovered a bigger issue with their plan design that impacted overall retirement readiness.

Our current state analysis showed the workforce tracking to an average retirement age of 67.9. We then used our predictive analytics model to run different scenarios. 

 

Our analysis revealed two insights:

1. Fixing the withdrawal problem would only improve the retirement readiness outcome to age 67.0. This means that withdrawals were only part of the problem.

2. Contribution rates were the biggest barrier to on-time retirement. Nearly one-third of their workforce had a 0% savings rate or were not taking full advantage of the employer match. 

We then modelled different contribution formula combinations to improve the plan design. This also involved analyzing household income and external savings using postal code data from publicly-available sources. This provided a broader perspective to their retirement readiness rather than a workplace-only view.