Employers Seek to Enhance Retirement Readiness
Employee retirement readiness is a top priority among more than three-fourths of employers participating in Deloitte Consulting’s Annual 401(k) Benchmarking Survey, 2012 Edition. Only 12% of plan sponsors said that most employees are or will be “financially prepared for retirement.”
Employers are attempting to address this situation by implementing retirement readiness assessments; nearly two-thirds reported conducting such assessments in 2012.
Automatic enrollment is among steps taken
Other steps taken by sponsors include offering automatic enrollment. About 86% of those whose plans have this feature see a positive effect on employee participation rates. More than 50% of plans offer a Roth 401(k) option to enhance participation. And almost two-thirds are offering individual financial counseling and advice, demonstrating the focus that plan sponsors are placing on participant education.
Planning tools are not being used
Unfortunately, the survey results also revealed that participants aren’t using education tools and other planning resources to the fullest. This has led to employers encouraging providers and recordkeepers to develop innovative approaches like podcasts and webcasts, where participants can get education on demand, and more extensive social media and mobile applications.
Visit http://tinyurl.com/Deloitte2012AnnualBenchmarking for more Deloitte survey results.
For Plan Sponsor Use Only- Not for use with participants or the general public. This information is not intended as authoritative guidance or tax or legal advice. You should consult with your attorney or tax advisor for guidance on your specific situation.
Kmotion, Inc., P.O. Box 1456, Tualatin, OR 97062; 877-306-5055; www.kmotion.com
© 2014 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance, nor as the sole authority on any regulation, law, or ruling as it applies to a specific plan or situation. Plan sponsors should consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.