Gap Analysis

Gap Analysis

A defined contribution plan is a retirement benefit with a specific purpose – to help employees save and prepare for life after their working years. Yet, many plan sponsors are unaware if their employees are on track to reaching their retirement goals. By failing to understand if employees have a gap in their retirement savings, sponsors can expose themselves to fiduciary risk.

Satisfy Your Obligation. Know Where Your Plan Stands.

Retirement Management Systems, in a cost-effective way, can deliver the critical analysis and insights needed.

Plan Sponsor Gap Report. Using your plan’s unique data set, our Plan Sponsor Gap Report scores your plan’s performance based on a participant-by-participant snapshot of retirement readiness. This type of benchmarking is required to meet your full fiduciary obligations.

Step 1. We analyze specific data for each plan participant, including current balance, savings rate and investment allocation, and project likely retirement income.

Step 2. We compare each participant’s projected retirement income to industry recommended ranges and flag individuals who have a shortfall.

Step 3. We prepare and deliver to you a participant-by-participant level summary that visually highlights individuals in your plan with a projected shortfall as well those without.

Participant Gap Report. Using the results from the Plan Level Gap report, a sponsor can target individual participants with a personalized Participant Gap Report. This Report illustrates the amount of projected shortfall, and what it will take to get from today to retirement, including specific recommendations for improvement.

Step 1. Using the results from the Plan Sponsor Gap Report, we work with you to identify the targeted group of participants to deliver a personalized Participant Gap Report.

Step 2. We develop a report for each individual that illustrates how their current savings rate and investment allocation will translate into future retirement income. Their gap is highlighted in today’s dollars and specific recommendations for improvement are offered.

Step 3. We brand the full-color report with your company’s logo, and deliver it via mail to the homes of the targeted participant group. Our expert team of financial advisors can be made available for one-on-one counseling upon request.

Plan Sponsors and Participants Receive Important Benefits

Our Gap Analysis Reports can help retirement plans cost-effectively manage fiduciary risk while also delivering improved participant outcomes. Employers cite tangible results, including increased participant savings rates and investment allocations that are better suited for individual participant circumstances, among others.

Call your financial advisor or Retirement Management Systems to learn more.