Employer Update

National Retirement Security Month provides an opportunity for employees to revisit their personal retirement goals and determine if they are on track for a secure future.

Since the onset of the coronavirus pandemic, six in 10 workers reported having to tighten their belts to weather the crisis, according to a recent survey conducted by Transamerica Center for Retirement Studies . Some reduced day-to-day expenses (32%), while others dipped into savings (24%) or accumulated credit card debt (17%).

Despite the financial strain, workers maintain a laser focus on their future – 82% continue saving for retirement through an employer-sponsored plan.

VRS stands ready to help, with tools and resources members can use to weather life’s storms and plan for a secure future.

Pass along to members these five important VRS tips:

1. Start with myVRS: When members register for myVRS and log in regularly, they can take advantage of the growing library of retirement planning resources and self-service features. They can use the myVRS Benefit Estimator to see what their VRS benefit in retirement might look like under different scenarios. With the myVRS Retirement Planner, members can set an income-replacement goal and enter expected income sources. The planner includes calculators and a budgeting worksheet to help members meet their future goals.

2. 2021 MBPs provide a retirement checkup for members: Encourage employees to use their annual Member Benefit Profiles (MBPs) and myVRS accounts jointly to help them stay on track with their retirement goals.

If you have members who do not have online access, you can look up their current MBPs in myVRS Navigator through your employer access view.

3. Build knowledge with myVRS Financial Wellness: The nationally recognized myVRS Financial Wellness program aims to help VRS members make informed and educated decisions on everyday financial matters while saving for the future. Through their secure myVRS accounts, employees can tap into articles, videos, mini-courses and customized action plans to help them pursue financial goals.

4. Maximize their savings: For hybrid plan members, this means making voluntary contributions. Members who make the maximum 4% voluntary contribution qualify for 2.5% in employer matching contributions.

Alert employees now: 4 p.m., September 15 is the next quarterly deadline for voluntary contribution changes.

5. Create a blueprint for the future: VRS members may sign up for no-cost webinars and one-on-one 30-minute consultations with Certified Financial Planning (CFP^®) professionals at varetire.org/make-a-plan. Services are provided through MissionSquare Retirement, the third-party record keeper for VRS Defined Contribution Plans.

A financial plan is an available option based on a member's individual needs. Depending on the complexity of the plan and a member's defined contribution account balance, a fee may be required.