Communicating ESOPs as Something Other Than a Retirement Plan

Most companies make a point to communicate their ESOPs as a retirement plan. But most ESOP participants will get distributions well before retirement. While it is appropriate for companies to advise employees to think of ESOP distributions as part of their retirement planning, the truth is that many employees will spend at least part of the distribution when they get it. So why not communicate ESOPs as a wealth-building plan? Wealth can be used for retirement, of course, but it can be used in other ways as well. This approach makes the plan more immediate while also making it clear that there are some risks.