Voya’s support for e-communications to help improve retirement outcomes through the RETIRE Act
This week, a Congressional hearing is taking place to discuss the Receiving Electronic Statements to Improve Retiree Earnings (RETIRE) Act, one of several important legislative proposals impacting how workers in our country save for retirement.
The RETIRE Act would make electronic delivery the default method for communication to participants in 401(k), 403(b) and 457 workplace savings plans. This means individuals would automatically receive account correspondence in digital form, keeping pace with the dynamic technology landscape and the way in which many people choose to obtain their information today. Additionally, the RETIRE Act includes important safeguards to allow all retirement plan participants to continue receiving paper statements at no additional cost if that is their preference.
Voya supports the RETIRE Act, and we encourage you to contact your representative so that Congress passes this important legislation. Research demonstrates that a change to modernize the existing rules makes sense.
For example, the number of retirement plan participants who interact with their plan providers through a smartphone and/or tablet grew at a rate of more than 50% in just three years (26% in 2012 to 40% in 2015¹). Yet, since the passage of the Employee Retirement Income Security Act of 1974 (ERISA), the same default distribution method of paper has remained in place despite dramatic technology and communication improvements.
Consumers also say that receiving electronic statements would have a positive impact on their retirement planning experience. Key advantages include: enabling them to review their statements anywhere; allowing documents to be searched and retrieved more easily; and providing a more environmentally friendly option.2
The nearly 13 million people whom Voya Financial is helping on their path towards a secure financial future would benefit directly from a switch to default electronic delivery. The RETIRE Act would allow us to provide more up-to-date and personalized information while helping individuals achieve potentially superior retirement outcomes through their engagement with electronic tools and experiences, like Voya’s myOrangeMoney® online interactive platform.
Voya is pleased that policy and lawmakers continue the important dialogue on how to advance financial wellness and produce more positive retirement outcomes. As this and other retirement-related legislative issues evolve, we will be sure to keep you and your participants updated. Thank you for your continued partnership.
¹Deloitte’s 2015 DC benchmarking study
²Voya online consumer research community