Retirement Plan Obstacles
If you, your plan or your participants suffer from poor participation, low deferral rates or shortsighted investment decisions, you are not alone. Here are three major obstacles that sponsors need to overcome to help produce better retirement plan outcomes!
POOR PARTICIPATION
Of the 8 out of 10 full time workers having access to an employer - sponsored retirement plan, only 65% participate.1
LOW DEFERRAL RATES
Deferral rates are climbing; the new average deferral rate = 6% 4
SHORTSIGHTED INVESTMENT DECISIONS
9 in 10 participants express regret about not doing a better job at saving for retirement.6
USE THE 90 - 10 -90 RULE
AIM FOR 90%
PARTICIPATION RATE
Boost Participation with
Automatic enrollment!
The auto-enroll feature increases participation rates from 57% to 92%2.
3 in 4 participants say YES to automatic enrollment at 6% 3
AIM FOR 10% +
DEFERRAL RATE
Boost Deferral rates with
Automatic escalation.
71% of employees enrolled in automatic annual increase programs choose to remain in them.5
4 in 5 participants say YES to automatic increases.3
Boost Deferral rates with
enhanced match formulas.
3 out of 4 employees prefer a 3% match over a 3% raise in pay.3
AIM FOR 90% INVESTMENTS TO BE MANAGED OR USE QDIA
Enhance investment
glidepaths with QDIA.
4 in 5 participants say YES to (QDIA) re-enrollment.3
Reach out to employees who may have previously opted out of saving with re-enrollment.
60% of participants say YES to retroactive automatic enrollment.3