Success by Design: How to Improve 401(k) Plan Health

It might have seemed like a good idea to offer 401(k) participants a smorgasbord when it comes to designing the right plan to help them retire successfully. But behavioral finance shows us that participants are plagued by inertia and irrationality. Bank of America Merrill Lynch provides a thoughtful white paper detailing concrete steps to design plans that are more likely to improve participant outcomes. While some solutions may seem obvious, the white paper lays out a simple and clear path to success. For example, suggestions on ways to improve financial wellness include measurement, advice and going beyond retirement. The research shows that more employers are interested in improving the effectiveness of their retirement plans — offering an optimistic view of the state of the industry.