What Employees Want Out of Financial Tools for 401k Retirement Plans

Posted: Mar 24, 2022 11:37:48 AM

Online Financial Tools for EmployeesInformation technology has made it easier for employees to track their 401k retirement plans. Younger generations of employees from Millennials to Generation Z are technologically literate. They prefer getting instant access to their financial information through their phone or computers. 

Studies have found that there are certain key features employees should have in a financial technology tool. If employers want greater enrollment in their 401k plans then they need to provide easy access to financial planning apps and investment education.

There are many financial planning tools on the market. As an employer, it is your job to attract and maintain talent, superior benefits help accomplish that goal. Read on to learn more about what important features employees want from fintech apps for their 401k retirement plans. 

24-Hour Access

Gone are the days when employees had to call a record-keeper to get information about their 401k investments. Today’s employees demand instant, 24-hour access to their 401k retirement plans. They want to be able to access not only retirement education, but investment education on any device. 

Fintech apps allow easy access to account information and without unnecessary hindrances. But with all the personally identifiable information, companies have to protect from fraud and theft. A 401k plan app (or any financial app) should include measures to secure their accounts such as access control via things such as a dynamic PINs, mandatory password changes, short session times, and regular monitoring.   

Customized Experience

According to a recent survey, one of the top requirements that employees want from their 401k financial tools is a personalized user experience. Employees are at different life stages. So a 23-year-old at the start of their career needs different investment information than a 60-year-old employee about to retire.  No matter the age, surprisingly, they want to speak to an experienced professional not about how much to put away, but where to put it. Providing investment education for different types of employees will help employers attract and maintain talent. 

Employees also like a financial tool that sends out targeted messages that can help them make better decisions. 

Ease of Use

Another important feature employees are looking for from their financial tools is that they should be easy to use. The app should load fast and have intuitive features that allow employees to access whatever information they need.

The financial tools should also have self-service functions that enable a user to carry out any task that they want. For instance, to make changes to their investment accounts.

The most helpful financial tools allow investors to access information from several companies on other platforms. Multi-provider integration reduces the hassle of having to download an app for each of their investment accounts.




Portfolio Management Guidance

Many employees are new to 401k investment. They need someone to guide them on portfolio management and in which baskets to place their eggs.

The best financial planning tools provide investment education. (Not too many do.)  This gives employees the confidence to make sound investment decisions and helps develop a commitment toward their employer.

Improved Customer Service

Along with financial guidance, employees want financial tools to improve the customer service standards of their 401k providers. Financial tools shouldn't replace human contact but enhance it. Choose apps that can connect employees to actual advisors that may answer any queries via text, phone, email, or online text or video chats.

In fact, the vast majority of employees still prefer speaking with an advisor when it comes to their retirement funds. A good 401K financial planning tool must combine technology and in-person service.

Peer Reviews

Financial planning tools should also take advantage of social networks. Employees like to read advice from people like them who are successfully on the path to achieving their retirement investment goals.

Studies find that 72% of Millennials and Generation Z follow influencers on social media. Convincing reviews from peers and people they look up to will increase the uptake of 401k’s for employees. 

Increased Returns

The main reason why employees need financial tools is to better manage their 401k plans and increase their returns. So, tools that provide easy access, automated decision-making, and investment education and news can all provide greater returns. This is why tools such as the one from GGA Retirement are valued by employers and their employees. 

Investment tools should also reduce the underlying management costs and fees that employees pay for their 401k. Fees can drastically reduce their investment gains and financial tools are a great way to reduce management fees.

Take Note of Employee Requirements for 401k Retirement Plans

Advances in technology have enabled the creation of financial tools that make it easy, fun, and profitable to manage 401k plans. To increase employee enrollment in your 401k plan, invest in the right financial planning tool. Find tools that are easy to use while providing personalized investment education.

At Granite Group, we have an industry awarded 401K financial tool that provides what employees are looking for. We work directly with companies or through financial advisors. 

Schedule a free demo of our financial app by clicking below, or if you would like more information on how we can be a resource to help with your 401K plans, contact us today. 



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