For most Americans, an employer-sponsored 401(k) plan is their only source of retirement income outside of Social Security. However, not everyone who is offered an employer-sponsored plan takes advantage of it.
Out of 139 million full and part time workers, 56% participate in a retirement plan while 71% have access.1
Only 36% of American think their retirement saving is on track.2
There is ample space to increase 401(k) participation and provide clarity for those already enrolled. JULY’s proprietary enrollment software is simplifying how participants enroll in and interact with their retirement plan.
Barriers to Enrollment
Enrolling in a retirement plan has historically been complex and overwhelming. Enrollers hand out slick retirement guides and plan design information sheets, which often go unread. There are long forms to complete. Add a pandemic to the mix, and now more than ever employees are expected to educate themselves and just ''figure it out.''
Advisors Can Help
The advisor community has been instrumental in obtaining higher participation rates by helping Americans untangle plan benefits, assess risk tolerance and navigate tedious enrollment websites.
Still, a simpler process out of the gate is needed…
JULY Provides Solutions
JULY acknowledged these barriers and tackled them head-on. Our new proprietary JULY enrollment software weds powerful technology with user-friendly design.
- 1 http://www.pensionrights.org/publications/statistic/how-many-american-workers-participate-workplace-retirement-plans
Using the guiding principles of Innovation, Simplicity & Play, the software delivers an easy, well-thought-out enrollment experience.
“Over the past decade, JULY has made internal software development a core competency and built one of the deepest software development teams in the retirement plan industry,'' JULY CEO John Humphrey says. “And unlike select 401(k) startups that have raised millions from venture capital and private equity – some in excess of $50 million – JULY is already a profitable organization. We leverage our software development team to increase efficiencies and enhance our financial model.''
-Excellent 401(k) providers build proprietary software.-
JULY’s new enrollment software walks the individual through important decisions. Short, professional videos address participants’ questions like:
1. Why Should I Participate?
2. How Much Should I Save?
3. How Do I Choose Investments?
Our interactive Learning Library takes the guess work out of enrollment and enables participants to make informed decisions quickly.
“Creating software that walks users through deferral and investment decisions in an easily understood way is critical to getting individuals to save. If the participant can clearly see the impact to their paycheck and visualize how investment choices work, they are likely to sign up with confidence. We see streamlined software as a way to deliver easily consumable participant education,'' JULY’s VP of Product Development and Marketing Michelle LeCates says.
Capture The Attention
Capturing the audience the moment they log in is critical to successful participation statistics, appropriate diversification and account growth.
Most importantly, it’s critical to a “Yes!''… And we all know getting started with saving for retirement is half the battle.
Enrollment Tool Features
In bold illustrative detail, the enrollment tool estimates the participant’s:
Tax Savings (Federal & State)
Impact On Paycheck
Projected Account Growth
Combined, these customizable features allow for a detailed and compelling projection.
We’re serious about streamlining the process for participants. With our Quick Enroll feature, preconfigured elections have already been made so participants don’t have to.
Participants still save for retirement, without the hassle of reviewing dozens of options. And they can make changes to the plan later on.
Quick Enroll’s Average Enrollment Time: 3 minutes 15 seconds.
Our enrollment tool simplifies the investment selection process by grouping investments by broad asset category and by asset type. Participants answer an optional brief series of simple questions related to their investment risk tolerance, helping direct them to the investment vehicle best suited for their unique needs.
If applicable, participants can choose to invest in an age-based or risk-based model. They can also choose from a comprehensive list of funds, with or without a risk questionnaire, to develop their own allocation.
A unique customization feature related to the investment selection process includes the ability for investment fiduciaries or asset model managers with funds in the plan to use their own risk tolerance questionnaire. This allows them to make investment selections true to their plan’s investment philosophy and policy statement.
Other Notable Features
Opt into automatic deferral escalation
Warnings if not contributing up to the match limit
Ability to easily set their rebalance frequency
Rollover in options
All of these ensure participants receive the maximum benefit from their plan, increasing the likelihood of a successful retirement.
JULY’s new enrollment software was released late summer of 2020. Future iterations will accommodate additional investment types like brokerage accounts and participant-level managed accounts.
JULY continually expands its software capabilities to bring innovative retirement plan services to small businesses and individual investors.
JULY is a 401(k) services company specializing in hi-touch, tech-enabled retirement plan services. Our employees have served as plan experts to advisory firms, advisor and employers in the small and micro 401(k) plan market for over 25 years. Over the last decade, our in-house software development team has built a host of proprietary technology solutions to streamline, automate and simplify all facets of retirement planning to make processes rewarding and easy for our clients. For more information about JULY, visit our website. https://www.julyservices.com.