As uncertainty persists — in the economy, in financial markets, and on the geopolitical stage — your employees may have worries about their retirement savings. They likely have questions, like:

• Should I enroll in the company retirement plan?
• How much should I be saving for retirement?
• Where should I be investing my savings right now?
• If I’m already saving enough to get the employer match, why do I need to save more?

Educating your employees about the benefits of your company’s retirement plan, and how to make the most of their savings to achieve their goals for the future, is vital when it comes to increasing participation, deferrals, and plan engagement, as well as helping improve retirement readiness across the board. April is Financial Literacy Month — a month dedicated to educating individuals about the importance of saving for future financial security. As such, it’s an appropriate time to review your retirement plan education efforts and assess how you can help your workforce improve their financial well-being by encouraging them to take control of their savings for the future.

Common employee misconceptions about retirement savings

When it comes to employees’ perceptions of their 401(k) plan at work, misconceptions abound. For instance, they often think that creating a retirement portfolio made up of the “right” mix of investments is the key to successfully achieving their financial goals. The problem with this belief, besides that it’s a myth, is that employees tend to agonize over their retirement investing decisions, typically to the point of analysis paralysis. This causes them to do nothing and simply rely on the plan’s default investment option, or choose the wrong types of investments for their specific situation and goals.