There’s been a steady, growing drumbeat of warnings. Too many Americans will hit retirement age without sufficient savings. Projections indicate that Social Security reserves will be depleted by 2033. With that, Social Security retirement benefits could then fall by ~20% ⁱ, barring adjustments to payroll tax, retirement age, and/or benefits.

A challenge to recordkeepers

In 2025, the percentage of workers with access to retirement plans stood at 75 percent. However, 25 percent of those workers were not participating in their plans.ⁱⁱ

How can recordkeepers help to bridge that gap? A potent combination of automation and education can make a difference in improving engagement, understanding, and participation; that combination is becoming table stakes in today’s consolidating recordkeeper market.

Automate for impact

Automation is no longer about efficiency alone. In an environment where employees are inundated with content, recordkeepers must deliver timely, relevant communications that prompt action.

Recordkeepers who deploy data-driven, behavior-triggered communications see measurable lifts in enrollment, contribution rates, and participant engagement-while we see generic, paper-based enrollment kits yield a usage rate as low as 19%, according to proprietary Broadridge data.

Leading recordkeepers know the power of personalization and the economic advantages of automation. Through digital, automated retirement communications, they’re able to tailor employee messaging by age, generation, demographics, and financial-literacy levels, delivering experiences that foster greater understanding, participation, and trust.

• Reduce costs while increasing engagement and insights through optimized digital-first journeys for newly eligible employees, with reminders and clear calls to action.
• Activate low-balance savers with targeted nudges that show how small increases today improve long-term outcomes.
• Optimize engagement by channel, pivoting across email, SMS, or direct mail based on participant response.
• Track and refine performance with real-time metrics on engagement, enrollments, and contribution increases.

Educate for clarity and trust

Using automated, digital communications, recordkeepers can utilize more personalized, targeted messages to help dispel misconceptions and clarify the benefits of participation.

This personalized approach can help right from enrollment. In one recent study, nearly a quarter of eligible employees didn’t know if they were eligible. And many (59%) non-participants believed they were participating ⁱⁱⁱ.

Employees may not understand the true benefits of retirement savings plans either, nor the dollars they can add to their savings through matching programs. The compelling case for setting money aside in a retirement account can get lost in the details.

Plus, when money is tight (lower-income employees are far less likely to participate), employees need clarity and reassurance that it’s their money, it’s working harder for them, and there are ways they can use it before retirement should certain needs arise.

Here’s a quick example: Secure 2.0 provisions offer ways to weather personal financial challenges more smoothly. Participants can temporarily tap into their 401(k)s without penalty in certain instances, such as health emergencies and tuition requirements ^iv. When employees understand this added flexibility and how it works, it can ease their objections to locking up finances in a 401(k) and help them feel more confident in their decision to participate.

Inspire increased contributions

Auto-enrollment helps drive participation, but auto-escalation, which increases employee contributions annually, has proven less successful ^v. Too many employees opt-out. This, again, is where education comes in.

• Clearer messaging tailored to specific situations and needs can help employees understand why escalation has been introduced, and how today’s small increases can translate to bigger savings and returns over time.
• Personalized messaging adds the context employees require to accurately assess their options.

Then, if employees continue to opt-out, at minimum they’ll do so with a clearer sense of their employers’ commitment to adding value.

Better experiences. Better outcomes.

The bottom line here is that digitally automating retirement-plan communications creates a better experience for recordkeepers, plan sponsors, and, most importantly, employees. Recordkeepers gain agility, accuracy, and a rapid ROI on their investment. Plan sponsors, who want to do right by their employees, increasingly seek out automated solutions. And, educated employees better understand the thought and value behind their retirement savings plans, and how those plans can set them up for a firmer financial future.

Want to learn more about the power of digital engagement? Check out these other articles in this series:

Going Digital: A Win for Plan Enrollment, Deferrals and Revenue

The four essential financial benefits of digitizing retirement communications

^{i Department of Labor statistics, 2025}

^{ii ibid}

^{iii Retirement Research and Insights, Principal®, 2024.}

^{iv https://www.congress.gov/116/plaws/publ94/PLAW-116publ94.pdf#page=605}

^{v https://crr.bc.edu/how-helpful-is-auto-enrollment-in-401k-plans/, Center for Retirement Research, 2025}