EMPLOYER Driving better financial outcomesretire.massmutual.com/retire/pdffolder/rs4729.pdfoverload and to drive action, messaging must be at the individual level and focus on the

Driving better financial outcomesFor your employees and your organization

E M P LOY E R

FOR EMPLOYER USE ONLY.

A growing number of businesses are becoming more aware of the importance of the “retirement readiness” of their workforce and its potential impact on the organization’s bottom-line results. A workforce that is financially unprepared to retire can impact businesses in a wide variety of ways, including potentially higher labor costs, increased health care premiums and lower productivity due to financial stress. Given the business implications, 83% of plan sponsors cite improving retirement readiness as a top priority.1

What exactly does “retirement readiness” mean, and how do you know if your employees are retirement ready?

More than simply saving, this is a state in which a participating employee is on target to have sufficient replacement income in retirement so they can retire on time. At MassMutual®, we define 100% retirement readiness as the ability to replace at least 75% of projected income by age 67 through anticipated life expectancy.

Employers have started to focus on a broader view of their employees’ financial wellness, so they can better understand the barriers employees are facing in saving for retirement. Paying down existing debt, lack of emergency savings and inability to meet monthly expenses are more commonly cited as the primary financial wellness concern among employees.2 If they aren’t able to tackle their short-term goals, they won’t be able to start thinking about retirement.

Retirement readiness and the bottom line

A mutual interest in financial wellness

1 2017 Willis Towers Watson Defined Contribution Plan Sponsor Survey: https://www.willistowerswatson.com/en-US/Insights/2018/04/2017-dc-plan-survey-executive-summary

2 2019 Deloitte Defined Contribution Benchmarking Survey: https://www2.deloitte.com/content/dam/Deloitte/us/ Documents/human-capital/us-the-retirement-landscape-has-changed-are-plan-sponsors-ready.pdf


MapMyFINANCESSM

A dynamic solution for improving employee financial wellness

At MassMutual, we believe that financial wellness is in everyone’s best interest. When employees have a financial game plan for meeting the financial challenges ahead, they’re more focused and productive. They’re also more likely to retire on time — which can be good news for your organization’s bottom line.

3 Solutions will be offered from MassMutual and key third-party partnerships. Not all solutions may be available.Guidance may not be available for certain products. Guidance is based on MapMyFinances assumptions and information provided by the employee and employer.

2FOR EMPLOYER USE ONLY.

The challenge to becoming financially well is not a one and done process but a journey that needs to start with where your employees are now. We provide your employees with a game plan for each step of their financial lives, so they can tackle what’s next.

The centerpiece of our financial wellness program is MapMyFinances — an online educational planning tool that helps employees create a comprehensive game plan for financial wellness tailored to their personal situation.

Also, as part of MassMutual’s approach to financial wellness and our commitment to providing a full financial game plan, we offer co-manufactured solutions to help with Student Loan Debt, Health Savings and Emergency Savings. Once elected, these solutions are fully integrated within MapMyFinances.3

We will provide a current wellnessSCORE

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Achieving financial wellness and retirement readiness depends on workplace benefit offerings. Employers can significantly improve the retirement readiness of their workforce through fundamental plan design enhancements and customized investment options. For instance, employer matching contribution, automatic enrollment and automatic deferral increases can help to realize real improvements over time.

If adopted, these features can help to offset challenging demographics like age, tenure and income, which influence key measurement factors within the plan. The correct implementation of plan design is essential. It matters how employers adopt plan features to set up the plan for success.

The process of identifying and implementing specific plan design enhancements is based on the individual results after analyzing the financial wellness of your workforce. We help employers to improve the overall performance of their plan continually.

A range of investment optionsYour employees aren’t all the same, which is why MassMutual offers several investment options to help your plan participants customize their paths to retirement.

• Employees can choose the Self-Directed option if they are comfortable making investment decisions on their own.

• Target Date Funds offer a single-step investment choice for employees who want a simplified approach.

• A Managed Account provides a personalized portfolio service for a more holistic investment approach.

Unlocking value through design


4 2019, T. Rowe Price, Auto-enrollment’s Long-Term Effect on Retirement Saving: www.troweprice.com/content/dam/retirement-plan-services/pdfs/insights/CCON0020242_C8.pdf

5 2019, T. Rowe Price, Reference Point Annual Report: https://www.troweprice.com/content/dam/retirement-plan-services/pdfs/insights/Reference-Point-Annual-Report-2019.pdf

6 2016, Auto Escalation Beats Inertia, So Why the Hesitancy?: https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/auto-escalation-hesitancy.aspx

Some services may not apply for certain plans. Please contact your financial professional or MassMutual retirement specialist on specific offerings.


Steps to improving plan health

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Diagnose the financial health of your workforce

Using real participant data, MassMutual seamlessly integrates measurements and insights, both at the plan and participant levels, to precisely diagnose the financial wellness of your participants and the ability of the plan to drive retirement readiness.

Prescribe smart solutions to drive action

Participants can create a customized step-by-step game plan on how to help achieve their financial goals, while gaining flexibility for both the short and the long-term goals.

Measure improvements and reassess

We’re with you for the long haul. Periodic checkups measure, take note of progress and determine ongoing adjustments to improve your participants’ financial wellness outcomes and ultimately, help improve your organization’s bottom line.

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The problem that employers face when trying to determine the retirement readiness of their workforce, as measured by the overall “health” of their employer-sponsored retirement plan, is that the analysis of the plan often falls short, since it relies on industry averages and benchmarks.

That’s why MassMutual developed our proprietary retirement plan analytic tool to help measure retirement readiness. Viability is a leading-edge tool that uses your plan data to help you and your financial advisor:

• Help quantify the projected economic costs to your organization of delayed retirement.

• Help determine which plan design, participant education and investment levers you can pull to drive better outcomes for your employees — and your organization.

In addition, we can leverage your plan-specific data to analyze your employees’ current financial situation and generate a Financial Wellness report covering both your employees’ financial wellness and retirement readiness.

An important part of driving plan health is to engage in a continuous cycle of setting goals, analyzing data, reviewing outcomes and refining techniques. That’s why we continuously review your plan to make sure it remains healthy.

Real data drives better results

10%

When automatic features are offered:

86%

67%

average employee participation with auto-enrollment vs. 44% for those who have to opt-in4

participation in auto-deferral increase vs. 12% for those who have to opt-in5

1/3 of participants with auto-deferral increase have savings rates over 10% vs. just 1/5 of participants without auto-deferral increase6

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We understand the importance of getting employees to participate in your employer-sponsored retirement savings plan, and we’ve developed a proven strategy to reach individuals in the way they choose and engage and encourage them to take action.

Driving employee engagement

Guidance may not be available for certain products. Guidance is based on MapMyFinances assumptions and information provided by the employee and employer. Some services may not apply for certain plans. Please contact your financial professional or MassMutual retirement specialist on specific offerings.

1in3 Americans has saved zero dollars for retirement7

E M P L O Y E E A C T I O N

Innovation to improve employee outcomes

Self education opportunities

Customized messages to engage and encourage action

Targeted personal interaction

7 Source: March 14, 2016, 1 in 3 Americans Has Saved $0 for Retirement: http://time.com/money/4258451/retirement-savings-survey/

8 ContactCenterworld top-performing call center 11 years in a row (2008-2018).

Powered by industry-leading data analytics

Interactive Participant websiteOffer educational tools and resources to learn financial strategies, including calculators for retirement planning and life events

RetireSmart app Provide account access anytime, anywhere

Dynamic solutions for improving employee financial wellness

FOR EMPLOYER USE ONLY.FOR EMPLOYER USE ONLY.

Targeted employee engagementDeliver personalized, relevant messages year-round

based on powerful data and insights

Quarterly account statements Help participants keep tabs on their progress

and stay on track

Financial-planning tools Help employees assess retirement readiness and improve financial wellness

MapMyFinances tool Provide a comprehensive game plan for employees’ financial wellness tailored to their personal situation

In-person education meetingsEducate employees and help them

take action on the spot

Award-winning call centers8

Support from highly trained and knowledgeable professionals

87FOR EMPLOYER USE ONLY.FOR EMPLOYER USE ONLY.

If you tell employees 10 things, you’ve told them nothing. To break through today’s information overload and to drive action, messaging must be at the individual level and focus on the single most effective next step an employee can take on the road to retirement.

Getting to know your employeesOur unique approach to drive employee engagement combines robust data with behavioral finance and persona-based marketing techniques. Unlike many competitors who use only demographic and generational information to create messages for employees, MassMutual has done extensive research to understand their financial mindsets. We ensure we’re developing relevant messages (the “what”) and taking into consideration where they are on their financial journey. Through extensive data analytics, insights and other intelligence, we learn your employees’ financial motivators, challenges and confidence levels.

From this, we have identified five proprietary financial mindset segments, which brings your employees to life and enables us to consider their unique situations and how they might behave in those situations. This approach allows us to deliver personalized, relevant messages through a variety of media channels with unique timing across an employee’s journey toward retirement.

Our customized year-round employee engagement will help:

Increase employee enrollment

Maximize employee savings

contributions

Consolidate employee assets

Improve employee overall financial wellness,

including their retirement readiness

MassMutual‘s virtual education is a live, interactive learning experience that encourages maximum participation and enables employees to take action on the spot. A wide array of features help to engage the audience and make the meeting a memorable experience.

ConvenientWe can accommodate any time zone, with meeting hours available from 8 a.m. — 8 p.m. ET. Employees can join from any web-enabled device — from their computer to their smartphone or tablet.

CustomizableWe’ll help you choose the topics that best meet the specific educational needs of your employees. Meetings can accommodate from 10 – 500 attendees and include features to personalize the experience for your audience.

Effective and measureableOur virtual education meetings have proven to inspire employees to take positive actions toward their retirement goals. Success rates are comparable to onsite meetings. And our robust reporting capabilities will provide you with personalized results after your meetings.

Sophisticated messaging drives action

The future of learning is here

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Making it easy@workOur people work hard to make doing business with us easy. Their passion, perspectives and experiences can help drive your business forward.

Our transition, account management, investment, regulatory advisory services, retirement education and service specialists can provide real-life expertise to help your plan become — and remain — healthy.

FOR EMPLOYER USE ONLY.9


Use the questions below to determine if your current retirement plan provider has the tools and resources needed to drive better outcomes for employees and your bottom line.

Do you have reporting that demonstrates if employees are on target to retire?

Do you have data-driven insights and benefits analysis to help our organization optimize plan design?

How do you help our employees maximize limited-benefit dollars?

Do you have the option to offer holistic benefit solutions to employees?

How do you describe your approach to employee engagement?

How do you target employees to deliver relevant messages?

Questions to ask your plan provider

Experience MassMutualWe can help drive better outcomes for your organization’s retirement plan

and help your employees retire on their own terms.

To learn more, call your financial professional, local MassMutual retirement specialist or our sales desk at 1-800-874-2502, or email [email protected].

© 2020 Massachusetts Mutual Life Insurance Company (MassMutual®), Springfield, MA 01111-0001. All rights reserved. www.MassMutual.com.RS4729 620 RS-49450-00


NOT A BANK OR CREDIT UNION DEPOSIT OR OBLIGATION • NOT FDIC OR NCUA INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT GUARANTEED BY ANY BANK OR CREDIT UNION