Empower Retirement to launch enhanced web experience to 7.5 million participants

Jul 8, 2015
Press Release

Behavioral data from Empower Retirement Participant Experience shows motivating factors spurring participants to take positive action to drive better retirement outcomes

Empower Retirement, the nation’s second largest retirement services provider, today announced that it will launch an enhanced responsive design website for all 7.5 million Empower plan participants. The new site offers an unrivaled retirement planning experience that integrates modern plan design elements with proven behavioral science to help participants better understand their future savings needs.

“We are taking a significant step forward and launching the new Empower Retirement Participant Experience for the benefit of millions of participants and their families,” said Edmund F. Murphy III, President of Empower Retirement. “This new web user experience builds on our award-winning user interface with enhancements to design and functionality and is aimed at motivating people to create better retirement outcomes.”

The Empower Retirement Participant Experience has been enhanced based on how participants behave and the information they choose to consider when making decisions related to their retirement savings strategy. The site offers a personalized view of a participant’s financial picture, including factors impacting their ability to save, and provides recommended tasks on which participants can take action.

The site is designed to make use of Empower’s state-of-the-art recordkeeping system and uses a fully responsive mobile design to accommodate any device a participant chooses to use including a laptop, tablet or smart phone.

Features include:

  • Healthcare cost estimator: Shows data relating to the potential cost of future healthcare
  • “How Do I Compare?”: Demonstrates how a participant’s retirement preparedness compares to peers in their age, gender or income cohort
  • Personalized retirement income goal-setting: Allows participants to customize retirement income goals
  • Plan-specific, personalized ‘next steps’: Provides expanded, customized action items on which participants can act

In addition, the site can take into account assets held outside the plan and makes Social Security assumptions in its retirement income calculations.

The previous generation site, which was initially launched in 2010, delivers enhancements to design and functionality based on a years-long analysis of factors that drive participant behavior. Empower data shows that participants in defined contribution retirement plans tend to take action when offered personalized tools and information to help them understand specific factors relating to their preparedness for retirement.

For example:

  • Participants who were shown data about the potential monthly cost of healthcare in retirement increased deferrals by 25 percent, going from 8.02 percent to 10.06 percent, on average. Action rates were highest among those closer to retirement, with participants over age 50 taking more action than younger participants. The average age of a participant in the sample group was 41.5 years.1
  • Personal data showing a participant how he or she is faring versus others in the same age, gender, and income cohort also spurred action. Participants in the sample who were, on average, deferring 7.27 percent of their pay toward retirement were found to be inspired to keep up with top peers, by increasing savings to 9.07 percent (25 percent). However, peer comparison usage proved especially effective to a slightly younger audience, with the average user taking action under age 40.2
  • On average, participants increased their deferrals by over 18 percent3 when introduced to specific, personalized information about their retirement preparedness.

“These findings indicate to us that when you engage participants in a way that is meaningful to the individual, they will take action,” said Murphy. “Good savers will become better savers and participants who need to save more will very often do so.”

In addition to the web, each of the site’s features will become part of Empower’s holistic participant engagement strategy. Participants who wish to learn more about their plan through educational seminars, meetings and printed materials will be able to access much of the same information as digital users.

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Securities, when presented, are offered and/or distributed by GWFS Equities, Inc., Member FINRA/SIPC. GWFS is an affiliate of Empower Retirement, LLC; Great-West Funds, Inc.; and registered investment adviser, Advised Assets Group, LLC. This material is for informational purposes only and is not intended to provide investment, legal or tax recommendations or advice.

IMPORTANT: The projections, or other information generated on the website by the investment analysis tool regarding the likelihood of various investment outcomes, are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. The results may vary with each use and over time.

Insurance products are issued by or offered through Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office: New York, NY. Guarantees are subject to the terms and conditions of the contract and the claims-paying ability of the insurer.

The managed account service is part of the Empower Retirement Advisory Services suite of services offered by Advised Assets Group, LLC, a registered investment adviser.

The Empower Institute is a research group within Empower Retirement, LLC.

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