The following is a synopsis of Fund Action’s article, “Funds Capitalize on Tax Reform to Boost Business”, by Noah Zuss, published March 26, 2018 [subscription required].
Fund Action reporter, Noah Zuss, recently spoke with John Geli, President of DST Retirement Solutions, about how the Trump administration’s recent tax reform legislation may be leveraged in the retirement and asset management industries to drive participant savings and increase retirement assets.
Some retirement plan sponsors are taking the lead by proactively increasing their defined contribution plan employee match and implementing small salary increases; however, motivating plan participants to take additional action with these small windfalls is an additional opportunity – and challenge.
“If people are going to get salary increases, and they’re going to get bonuses, [plan sponsors] should be proactively going out to these participants and saying, ‘You have more money, use it for retirement before you go purchase something,’” John Geli, president of DST Retirement Solutions, told FA.
According to Geli, DST is fielding requests from recordkeepers for tools that can help communicate and illustrate the potential positive long-term impact of moving financial gains such as tax reform-related boosts into savings now.
“[They’re saying] We’re increasing the match, can we do a campaign to let people know were increasing the match,” he said.
For the full article and more thoughts from John Geli and other industry experts, visit Fund Action.
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