User experience, generically, refers to how the user of an interactive system, such as a website, feels when using that system. Feelings can range from at-ease to monstrously frustrated. The latter is to be avoided…. [T]he basics of a dashboard, according to some industry experts, is that they should make visible key metrics and performance indicator, streamline data, and provide real-time data and trends.
Retirement dashboards have been in use for investing and financial planning for several years. Dashboards aggregate the necessary information individuals need to track their retirement readiness. That information includes the basics, like total account assets and their returns. It might also include funds in individual accounts and social security benefits information. Some pension providers, including some state governments, also include contact details for administrators of those various funds. Defined benefit administrators often have their own dashboards to understand and analyze trends and financial positions within their plans. Dashboards have been so helpful in providing useful information for making retirement decisions that several countries have developed “national, online retirement ‘dashboards’—websites that not only include a registry or tracking system but also offer expanded functions such as recovering and consolidating lost accounts, projecting estimated future income, expanding financial literacy, and providing unbiased financial advice to users.”[1] In 2020, policy think tanks, such as the Brookings Institution, recommend dashboards as a tool to help lighten the strain creating and managing investment plans. They suggest that dashboards can help ensure “that workers understand and manage their retirement savings appropriately.”
Now, the Government Accountability Office has stepped into the dashboard cheering section. In May of 2024 they made a recommendation for a nationwide single dashboard that could provide this information for workers.[2] This dashboard would help workers track their 401(k) plans as they move between jobs. If that concept rings a bell, it might be because the SECURE Act 2.0 included a provision creating a national registry where participants can find missing 401(k) accounts. “One in particular includes the creation of a Retirement Lost and Found database housed at the Department of Labor (DOL). There, plan participants can find their older plans, obtain their contributions, and roll them into qualified accounts.”[3]
Not all dashboards are created the same. Aggregating complex, and sometimes stress-inducing, information in one portal requires special techniques. Some plan sponsors may want to use the technology they currently have, including software such as ReTool that creates templates for employee benefits dashboards.[4]
For those starting from scratch, sponsors may want to consider the basics of a dashboard. But before beginning the even the basics, it is worthwhile for sponsors to review their plans with their plan administrator and their compliance counsel. Understanding the limits and needs of compliance requirements can help ensure that the options considered are those that are appropriate for the retirement plan in question.
User experience, generically, refers to how the user of an interactive system, such as a website, feels when using that system. Feelings can range from at-ease to monstrously frustrated. The latter is to be avoided.[5] “In order to achieve high-quality user experience in a company's offerings there must be a seamless merging of the services of multiple disciplines, including engineering, marketing, graphical and industrial design, and interface design.”[6] And the basics of a dashboard, according to some industry experts, is that they should make visible key metrics and performance indicator, streamline data, and provide real-time data and trends. All of the information provided should be in the service of reducing information overload and allowing the user to make better decisions.[7]
Some experts suggest that the rules for creating great dashboards are simple. They boil down to the following five factors: 1) start with the end user in mind; 2) ensure they communicate information quickly and display it clearly and effectively; 3) prioritize ease of customization; 4) present the most important data points and assessments in the highest value space; 5) aim to make all information accessible within one click. Some suggest that to achieve the goals of prioritization of space and ease of customization, dashboard creators may want to consider relying on smaller or minimized views of data presentations can be used with an option to click through to a more detailed set of information.[8]
[1] https://www.brookings.edu/articles/a-retirement-dashboard-for-the-united-states
[2] https://www.govtech.com/health/government-report-calls-for-national-retirement-dashboard
[3] https://www.bcgbenefits.com/blog/secure-act-get-your-forms-ready
[4] https://retool.com/templates/employee-benefits-dashboard
[5] https://playfairdata.com/why-dashboard-ux-is-important
[6] https://www.nngroup.com/articles/definition-user-experience
[7] https://www.aufaitux.com/blog/dashboard-design-principles
[8] https://www.toptal.com/designers/data-visualization/dashboard-design-best-practices
These articles are prepared for general purposes and are not intended to provide advice or encourage specific behavior. Before taking any action, Advisors and Plan Sponsors should consult with their compliance, finance and legal teams.
Before leaping into the unknown, we recommend a thorough examination of your plan. Because we are experts in the field, we know the marketplace and know what your existing vendor is capable of offering. Through this examination, we can help you optimize the service you receive.
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