Five Ways Public Retirement Plans Can Help Strengthen Their Members’ Retirement Readiness

By: Scott Garrett, Schroders

The benefits public retirement systems provide are the building blocks of retirement security. Still, benefits alone do not guarantee a successful retirement. Members who fully understand their benefits, have realistic expectations about retirement expenses, and take time to plan are often better prepared to make informed decisions and avoid unwelcome surprises after they stop working. Here are five ways plans can strengthen their members’ readiness for retirement.

1. Make Retirement Information More Accessible and Actionable

Retirement information is most valuable when it is easy to find, understand and use. Retirement systems should ensure that their online portals provide members with easy access to benefit estimates, retirement eligibility details, beneficiary elections, and other key facts. Clear explanations, intuitive navigation, and personalized information can help members understand what those numbers mean for their own situation.

Additional features, such as interactive calculators, can help members evaluate different retirement dates and determine whether they are taking full advantage of the benefits available to them. When members can see how different choices may affect future income, retirement planning becomes an ongoing process rather than an exercise conducted shortly before they leave the workforce.

2. Help Members Connect Retirement Income to Retirement Goals

Members are likely to be better prepared for retirement when they understand how their benefits and other sources of income fit into their overall financial picture.

Providing members with tools and resources to compare projected retirement income with anticipated expenses can help them gain a clearer picture of the lifestyle their financial resources and benefits can support. It can help them determine how much of their income they can devote to different priorities, whether that means traveling, pursuing hobbies, and other personal interests, or supporting family members.

That perspective can help members make informed decisions well before retirement. Whether that means saving more, adjusting their retirement date, or refining their expectations, the planning process can help members align their resources with the priorities that matter most to them.

3. Help Members Prepare for the Financial Transition to Retirement

One of the biggest adjustments retirees face is replacing a regular paycheck with retirement income from multiple sources. Managing income and spending often feels different once a regular paycheck stops.

Budgeting tools, spending worksheets, and retirement planning resources can help members prepare for that transition. Educational programs may be most effective when they allow members to explore different scenarios and see how changing expenses or inflation could affect their finances over time.

Financial wellness education can also help employees establish good financial habits such as sticking to a budget, maintaining emergency savings, and keeping debt under control. Those practices become even more important in retirement and, when applied successfully, can give retirees greater flexibility in how they spend and enjoy their work-free years.

4. Expand Access to Retirement Planning Support

Members with similar benefits may have very different financial circumstances and retirement goals.

Some systems build on traditional member education by offering retirement readiness reviews, financial wellness programs, one-on-one planning sessions, or access to qualified financial professionals.

Broader guidance can help members address questions involving retirement timing, income needs, supplemental savings, and household finances. Even when retirement systems do not provide advice directly, they can help members connect with appropriate planning resources.

5. Address Healthcare Costs and the Possibility of a Long Retirement

Healthcare information is more useful when members receive it early enough to incorporate potential costs into their plans. Education can help members understand retiree healthcare benefits, Medicare enrollment considerations, potential out-of-pocket costs, and coverage decisions involving spouses or other eligible dependents.

The good news is people live longer today. Still, a retirement of 20-30 years or more lengthens the exposure to inflation, market volatility and, for most retirees, continuously increasing healthcare costs. Helping members consider those risks can lead to more realistic planning.

The Bigger Opportunity

The larger opportunity for public retirement systems is to keep improving the ways members understand, use and act on the information and support available to them.

The goal is not simply to help members calculate a benefit. It is to help them see how that benefit fits into the life they hope to lead after leaving the workforce. When information, planning tools, and educational resources are clear, personalized and connected to practical decisions, members can approach retirement with greater confidence.

Scott Garrett, CFA is the US Head of Institutional for Schroders. He joined the firm in 2019 and has more than 25 years of experience in the industry. Prior to joining Schroders, Scott was a Senior Vice President at Systematic Financial Management (2006-2019). He was responsible for Institutional Sales, Consultant Relations and Relationship Management.

Scott began his career in the Investment Consulting industry in 2000. Scott holds the Chartered Financial Analyst (CFA) designation and is a member of both the CFA Institute and the Los Angeles Society of Financial Analysts. Scott graduated from the University of Arizona with a B.A. in Political Science.

Disclosures: All investments involve risk, including the loss of principal. Past performance provides no guarantee of future results and may not be repeated. The views shared are those of the author and may not reflect the views of Schroders Plc or any of its affiliates. Information herein has been obtained from sources we believe to be reliable, but Schroders Plc does not warrant its completeness or accuracy. No responsibility can be accepted for errors of facts obtained from third parties. Reliance should not be placed on the views and information in the document when taking individual investment and / or strategic decisions. Any mention of industries or sectors is for informational purposes only and should be interpreted as a recommendation to invest or divest in any company or adopt a particular investment strategy. This content was produced for informational purposes only and is not intended to provide, and should not be relied upon for accounting, legal or tax advice. Individual investor circumstances may vary. Plan participants should be advised to seek the guidance of a licensed financial advisor before making any retirement planning decisions. Schroder Investment Management North America Inc, registered as an investment adviser with the SEC, CRD Number 105820.