ALISO VIEJO, Calif., Nov. 3, 2015 /PRNewswire/ -- One of the most vexing conundrums in the retirement services industry is how to increase plan participation and salary deferral rates for American workers.
Boosting participation and contribution levels results more from increasing employee confidence than their knowledge of investing, according to a recent independent scientific study commissioned by vWise, Inc., the developer of VMAX SmartPlan (SmartPlan) digital participant engagement software.
SmartPlan provides "just-in-time" retirement education and plan information in easily understood, bite-sized sequences that instill confidence and drive employees to take action in their plans.
Measuring retirement readiness before and after SmartPlan
The study was designed to capture Retirement Readiness Confidence (RRC) scores from 256 plan participants. Each participant was asked a series of questions that measured and ranked RRC scores on a scale from 0 to 25, with 25 showing the highest confidence in successfully planning for retirement.
Prior to administering the survey, respondents were grouped into two categories: "Experienced Retirement Investors" (30% of the pool), and "Inexperienced Retirement Investors" (70% of the pool), based on their level of plan engagement. The results showed a dramatic increase in confidence levels after participants completed the SmartPlan experience.
SmartPlan increases confidence levels and helps overcome inertia
- Before SmartPlan, Inexperienced Retirement Investor's RRC score was 15% lower than Experienced Investors.
- After using SmartPlan, Inexperienced Retirement Investors RRC score increased by 18% from 17.23 to 20.64 and surpassed that of Experienced Retirement Investors.
- Statistically, the RRC score of Inexperienced Investors after using SmartPlan is the same as Experienced Investors.
"Evidence suggests a strong connection between instilling confidence in employees and their willingness to overcome fear and inertia, enabling them to take action," said Tony Mingo, President & CEO of vWise. "SmartPlan effectively bridges traditional ways of employee education and modern, more personalized engagement."
About VMAX SmartPlan
VMAX SmartPlan, the industry's most advanced platform for participant education, enrollment and analytics, is a comprehensive employee engagement solution that works seamlessly with a 401k-plan provider's existing online presence, print, technology, tools and human resources staff. It delivers information in digestible, familiar formats for participants at all levels of reading comprehension and investment sophistication.
vWise, Inc. is a creator of software and solutions for the employee benefits industry. vWise's award-winning VMAX Solutions are a digital integrated communication ecosystem for the defined contribution market that maximizes operational efficiency and profitability.
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SOURCE vWise, Inc.