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Personal Touch over Cyber in DC Education, Please

We may be in the cyber age, but don’t be too quick to discount the personal — at least regarding defined contribution plan education and assistance. Retirement planning service provider PlanVision found in a recent study that a strong majority of plan participants prefer personal guidance.

Plan participants do want assistance, the study found. Almost all — 96% — indicated that they wanted it with enrollment, reviewing investments and deciding how much they should save. Just over one-third indicated that they also would like help with understanding investments.

They would like to receive guidance one on one, the study found — to the tune of 88%. And as much as they like a personal approach, they dislike seminars and classroom presentation. Eighteen percent would prefer a webinar, and a mere 8% want to go to a classroom.

And most employees would prefer to receive that education sooner rather than later: a majority told PlanVision they would appreciate it if personal guidance were available to them when they enroll in the plan.

Also important: simplicity. Nearly all — 95% — said that they grasp plan fees after a provider gives them an easy-to-understand explanation. In light of these findings and the fee disclosure regulations issued by the Department of Labor, PlanVision suggests that employers and service providers may consider taking the initiative to help employees understand plan fees with a simple sheet explaining them.