Learn more about Vestwell's modern savings solutions.

Explore insights from Vestwell's annual saver survey.

Vestwell’s digital recordkeeping platform has brought the 401(k) and 403(b) industry into the modern fintech era. Learn more on our blog.

Saving for your future can help you be prepared for emergencies, make long-term investments, and ultimately achieve financial security. However, with 

 of Americans living paycheck to paycheck, building up a rainy day fund can be challenging.

We’ve compiled a few key resources to help you achieve your savings goals—regardless of your financial situation. 

From preparing for retirement and educational expenses to savings options for Americans with disabilities, we're here to assist you in your savings journey.

401(k) Basics: A Starter Guide to Understanding Your Retirement Plan

Retirement is a major milestone that requires significant savings, but it’s often overlooked. In fact, according to the Federal Reserve, 

 of working-age households do not have a retirement savings account.

Does your employer offer a 401(k) plan as a part of their company benefits package, but you’re not sure where to begin? Starting out can feel overwhelming—from deciding how much to contribute to your account to choosing the right investments. Check out our blog for a user-friendly guide to the basics of 401(k) plans. Learn how you can leverage your employee benefits to save for the living expenses and costs you may incur in your golden years.

What’s the Difference Between Pre-Tax and Roth 401(k) Contributions?

When it comes to retirement, it’s never too early to start saving. It’s important to begin setting aside funds as soon as you can to set yourself up for future success.

The first step in saving for retirement is understanding the different ways you can contribute to your account. Our blog linked below gives an overview of the different types of 401(k) plan contributions for those just starting out on their retirement savings journey.

5 Steps to Becoming a Retirement Millionaire

Do you know what it takes to become a retirement millionaire? In this article, Richard Tatum, Vestwell’s President of Workplace Savings, shares five tips on saving for retirement that can help you reach your retirement goals. If you're just beginning your career or looking to optimize your retirement strategy, these steps can help you understand how to build a substantial retirement nest egg. We’ll cover tips that range from harnessing the power of time and compound interest to increasing your contributions automatically.

Check out the article to get tips from a 401(k) plan expert.

Saving for College: Is a 529 College Saving Plan Right for You?

As the cost of education rises, Americans are borrowing more than ever before. In fact, according to Federal Student Aid, over 

 Americans have student loan debt. Opening a 529 tax-advantaged savings plan is a great way to get ahead of future education expenses. With a 529 plan, not only can savers make contributions to their accounts, but their money is able to grow while they save.

In this article, we discuss how 529 plans work, review their advantages, and demonstrate how effective they can be for education savings.

Student Loan Savings: 5 Programs to Improve Your College Saving Experience

Not everyone can get ahead of future education debt, and borrowing is often inevitable for students. But the good news is that if you have student debt, there are federal programs available to help you.

We'll explore programs such as the American Opportunity Credit, the Student Loan Interest Deduction, and others to demonstrate how you can maximize your educational investments.

ABLE to Save: Could an ABLE Account Be Right for You?

For Americans with disabilities and their caregivers, ABLE savings accounts have been a key tool in the quest for equitable saving. Did you know that around 

 individuals are eligible for an ABLE savings account, but 

Nearly 1 in 24 Americans are eligible to participate in these tax-advantaged savings accounts designed for Americans with disabilities to save for “qualified expenses.” Funds in ABLE accounts can be used to cover many types of expenses, from healthcare to housing and more.

For a full list of what account funds can be used for, plus information on whether an ABLE account may be right for you, check out our blog.

There’s no better time than the present to start saving, take control of your financial future, and set yourself up for lasting success. To register your Vestwell account, increase your savings rate, or track your progress, click 

Want to learn more about key financial concepts for savers? Click 

 to access the Vestwell University learning portal and view modules on 401(k) basics, contributions, and more.

Saving for your future can help you be prepared for emergencies, make long-term investments, and ultimately achieve financial security. However, with 78% of Americans living paycheck to paycheck, building up a rainy day fund can be challenging.

We’ve compiled a few key resources to help you achieve your savings goals—regardless of your financial situation. From preparing for retirement and educational expenses to savings options for Americans with disabilities, we're here to assist you in your savings journey.

Let’s dive in!



Take Control of Your Retirement Savings

401(k) Basics: A Starter Guide to Understanding Your Retirement Plan

Retirement is a major milestone that requires significant savings, but it’s often overlooked. In fact, according to the Federal Reserve, more than 45% of working-age households do not have a retirement savings account.

Does your employer offer a 401(k) plan as a part of their company benefits package, but you’re not sure where to begin? Starting out can feel overwhelming—from deciding how much to contribute to your account to choosing the right investments. Check out our blog for a user-friendly guide to the basics of 401(k) plans. Learn how you can leverage your employee benefits to save for the living expenses and costs you may incur in your golden years.

What’s the Difference Between Pre-Tax and Roth 401(k) Contributions?

When it comes to retirement, it’s never too early to start saving. It’s important to begin setting aside funds as soon as you can to set yourself up for future success.

The first step in saving for retirement is understanding the different ways you can contribute to your account. Our blog linked below gives an overview of the different types of 401(k) plan contributions for those just starting out on their retirement savings journey.

5 Steps to Becoming a Retirement Millionaire

Do you know what it takes to become a retirement millionaire? In this article, Richard Tatum, Vestwell’s President of Workplace Savings, shares five tips on saving for retirement that can help you reach your retirement goals. If you're just beginning your career or looking to optimize your retirement strategy, these steps can help you understand how to build a substantial retirement nest egg. We’ll cover tips that range from harnessing the power of time and compound interest to increasing your contributions automatically.

Check out the article to get tips from a 401(k) plan expert.

Make the Most of Education Savings

Saving for College: Is a 529 College Saving Plan Right for You?

As the cost of education rises, Americans are borrowing more than ever before. In fact, according to Federal Student Aid, over 40 million Americans have student loan debt. Opening a 529 tax-advantaged savings plan is a great way to get ahead of future education expenses. With a 529 plan, not only can savers make contributions to their accounts, but their money is able to grow while they save.

In this article, we discuss how 529 plans work, review their advantages, and demonstrate how effective they can be for education savings.

Student Loan Savings: 5 Programs to Improve Your College Saving Experience

Not everyone can get ahead of future education debt, and borrowing is often inevitable for students. But the good news is that if you have student debt, there are federal programs available to help you.

We'll explore programs such as the American Opportunity Credit, the Student Loan Interest Deduction, and others to demonstrate how you can maximize your educational investments.

Explore Additional Savings Opportunities

ABLE to Save: Could an ABLE Account Be Right for You?

For Americans with disabilities and their caregivers, ABLE savings accounts have been a key tool in the quest for equitable saving. Did you know that around 8 million individuals are eligible for an ABLE savings account, but less than 150,000 have opened one?

Nearly 1 in 24 Americans are eligible to participate in these tax-advantaged savings accounts designed for Americans with disabilities to save for “qualified expenses.” Funds in ABLE accounts can be used to cover many types of expenses, from healthcare to housing and more.

For a full list of what account funds can be used for, plus information on whether an ABLE account may be right for you, check out our blog.

Conclusion

There’s no better time than the present to start saving, take control of your financial future, and set yourself up for lasting success. To register your Vestwell account, increase your savings rate, or track your progress, click here.

Want to learn more about key financial concepts for savers? Click here to access the Vestwell University learning portal and view modules on 401(k) basics, contributions, and more.




Empowering Financial Success: Resources for Savers

 of Delaware’s population aged 50 and older and 

 seniors relying on their social security for the bulk of their income, there was a call for change in the Diamond State.

Delaware has passed legislation to establish a state-run retirement savings program for private-sector employees.

 of private sector workers in Delaware without access to an employer-sponsored retirement plan, this state program, named Delaware EARNS, will give those employees a chance to save for their golden years.

In this article, we’ll answer some questions you may have about the 

 program and explain how it affects Delaware businesses.

Delaware EARNS is a government-sponsored savings program created to help employees working in the state build savings for retirement. 

Delaware business owners who meet certain criteria will be required by law to offer a qualified, employer-sponsored retirement plan or enroll their employees in the program.

Delaware employees will make contributions to the program through automatic deductions from their paycheck into a Roth individual savings account (Roth IRA) unless they choose to opt out. 

The money in the account will grow tax-free, and employees won't have to pay income tax on any money they withdraw from their account during retirement.

The program is overseen by the Delaware EARNS Program Board but administered by private sector partners. The program is set to launch in 2024.

, employers who meet the following criteria are required to register for the program or certify an exemption:

Has been in business for at least 6 months

Does not currently offer a qualified, employer-sponsored retirement plan to their employees

Delaware EARNS is set to launch in July of 2024. Program deadlines for businesses are based on company size. The current deadline is as follows:

Employers with 5 or more employees | October 15, 2024

Once the program launches, impacted businesses must offer a plan or will face a penalty of $250 per eligible employee per year (up to a max of $5,000 annually).

Who Is Eligible to Save With the Delaware EARNS Program?

Most individuals who are 18 years or older and have earned income in the state of Delaware for at least 120 days are eligible to participate in Delaware EARNS.

The program is voluntary for employees, and they can change their contribution amount or opt-out at any time.

The Delaware EARNS program represents a notable development in retirement planning for Delaware workers. Automatic enrollment and contributions made directly through payroll deductions simplify the process of setting aside funds for retirement.

Once it launches, the program will require businesses with 5 or more employees that have been operating for 6 months or more to either register and facilitate Delaware EARNS or certify an exemption, so it’s important for Delaware employers to familiarize themselves with the program details and requirements.

Looking for information on the requirements for other states? Check out our resource page 

With about 40% of Delaware’s population aged 50 and older and one out of every five seniors relying on their social security for the bulk of their income, there was a call for change in the Diamond State.

Delaware has passed legislation to establish a state-run retirement savings program for private-sector employees. With 38% of private sector workers in Delaware without access to an employer-sponsored retirement plan, this state program, named Delaware EARNS, will give those employees a chance to save for their golden years.

In this article, we’ll answer some questions you may have about the Delaware EARNS program and explain how it affects Delaware businesses.



How Does Delaware EARNS Work?

Delaware EARNS is a government-sponsored savings program created to help employees working in the state build savings for retirement. Delaware business owners who meet certain criteria will be required by law to offer a qualified, employer-sponsored retirement plan or enroll their employees in the program.

Delaware employees will make contributions to the program through automatic deductions from their paycheck into a Roth individual savings account (Roth IRA) unless they choose to opt out. The money in the account will grow tax-free, and employees won't have to pay income tax on any money they withdraw from their account during retirement.

The program is overseen by the Delaware EARNS Program Board but administered by private sector partners. The program is set to launch in 2024.

Which Businesses Are Affected?

According to the Delaware EARNS website, employers who meet the following criteria are required to register for the program or certify an exemption:

Employs 5 or more workers

Has been in business for at least 6 months

Does not currently offer a qualified, employer-sponsored retirement plan to their employees

Registration Deadline

Delaware EARNS is set to launch in July of 2024. Program deadlines for businesses are based on company size. The current deadline is as follows:

Employers with 5 or more employees | October 15, 2024

Penalties

Once the program launches, impacted businesses must offer a plan or will face a penalty of $250 per eligible employee per year (up to a max of $5,000 annually).

Who Is Eligible to Save With the Delaware EARNS Program?

Most individuals who are 18 years or older and have earned income in the state of Delaware for at least 120 days are eligible to participate in Delaware EARNS.

The program is voluntary for employees, and they can change their contribution amount or opt-out at any time.

Conclusion

The Delaware EARNS program represents a notable development in retirement planning for Delaware workers. Automatic enrollment and contributions made directly through payroll deductions simplify the process of setting aside funds for retirement.

Once it launches, the program will require businesses with 5 or more employees that have been operating for 6 months or more to either register and facilitate Delaware EARNS or certify an exemption, so it’s important for Delaware employers to familiarize themselves with the program details and requirements.

Looking for information on the requirements for other states? Check out our resource page here.

The Delaware EARNS Program: Everything You Need to Know

Part-time employees have historically faced barriers to accessing their company’s retirement plan. Prior to recent legislative changes, only 

 of part-time private sector workers had access to a plan, compared to 

 has enabled more part-time employees to save for their futures. Passed by Congress in December 2022, the goal of this bipartisan legislation is to further boost retirement savings nationwide and expand upon the original SECURE Act passed in 2019.

The SECURE Act 2.0 brings forth several changes that impact employers offering a retirement plan, including updates to eligibility for what's known as "long-term, part-time" employees. 

This article will guide you through these new eligibility changes and highlight what employers need to know.

Before 2020, businesses were allowed to exclude employees from their retirement plan if they worked fewer than 1,000 hours during the plan year. The original SECURE Act from 2019 made strides in this area by requiring employers to include long-term, part-time employees in the company’s retirement plan if they worked at least 500 hours per year for three consecutive years.

Now, with the SECURE Act 2.0, even more Americans will be able to participate in their employer’s retirement plan.

How Have Eligibility Requirements Changed?

long-term, part-time employees over the age of 21 who work between 

500 and 999 hours per year for two consecutive years

 to be eligible for their employer's retirement plan.

Given the original SECURE Act and the updates made with SECURE 2.0, there are different timelines based on the business’s plan start date.

Businesses are not required to provide a match or make contributions towards a long-term, part-time employee’s account.

 However, once an employee has met the eligibility service requirement, they must be allowed to enroll in their employer’s retirement plan no later than:

 either January 1 or July 1 following when the eligibility requirements were met

 the first day of the seventh month of the plan year following when the eligibility requirements were met

For example, take long-term, part-time employee Tim, who has just met eligibility requirements on March 16 of the current year.

If his employer has a plan that follows a calendar year—January 1 to December 31—he will be allowed to enroll in the plan on July 1.

If his employer has a plan that does not follow a calendar year, and for example, the employer’s plan year is April 1 to March 31, he will be allowed to enroll in the plan starting October 1, the first day of the seventh month of the plan year.

After a long-term part-time employee has met the participation requirements, they continue to be eligible for the plan, even if they work less than 500 hours in the following years. For example, if Tim only works 200 hours the year after becoming eligible and enrolling in his company’s retirement plan, he still remains eligible for the plan.

Employers have the option to manually count and track the service hours of long-term, part-time employees to determine if and when they become eligible. However, for some employers, tracking these employee hours is difficult or even impossible. To simplify this process, SECURE 2.0 has allowed two alternative methods that employers can choose from to determine employees’ eligibility:

An employee becomes eligible after completing one year of service, and hours worked are not taken into account. 

Using the above example, if Tim started working on March 15, he would become eligible one year after his first day of work, on March 15 of the following year.

 An employee is credited with hours of service based on certain standards, such as crediting a predetermined number of hours for each day, week, or month of service performed, regardless of the actual hours worked.

For example, if Tim's employer credits all part-term employees 20 hours per week, he will 

 receive 20 hours per week. This stays true regardless of the hours Tim actually worked, whether it was 0 hours or 40 hours.

Check in with your service provider (third party administrator or recordkeeper) and financial advisor, if you have one, to ensure your plan aligns with the new eligibility requirements and that your plan documents are up to date.

If you plan to track long-term, part-time employees' service hours manually—instead of using an elapsed time or hours of equivalency method—be sure to start tracking hours as soon as possible, depending on your plan year. This information is vital in determining whether or not certain employees will become eligible for your plan.

Some service providers will track and manage employee hours for you. 

Vestwell partners with dozens of payroll providers that supply your employees’ hours of service directly to us. We track this service and notify employees directly when they are eligible to enroll in your company’s plan.

The nation’s retirement savings gap presents a crisis for workers—according to the 2022 

, almost half of American households have nothing saved for retirement. The SECURE Act 2.0 represents a significant shift towards inclusive retirement planning, expanding accessibility for more employees to save for their future, including long-term, part-time employees.

Transitioning to meet these updated eligibility requirements gives employers a prime opportunity to support these efforts to close the nation's savings gap. By doing so, businesses not only comply with federal regulations but will also invest in the financial well-being of their employees, fostering a more engaged and loyal workforce.

Chat with a Vestwell expert to get your plan in motion. 

Part-time employees have historically faced barriers to accessing their company’s retirement plan. Prior to recent legislative changes, only 39% of part-time private sector workers had access to a plan, compared to 77% of full-time employees.

However, the introduction of the SECURE Act 2.0 has enabled more part-time employees to save for their futures. Passed by Congress in December 2022, the goal of this bipartisan legislation is to further boost retirement savings nationwide and expand upon the original SECURE Act passed in 2019.

The SECURE Act 2.0 brings forth several changes that impact employers offering a retirement plan, including updates to eligibility for what's known as "long-term, part-time" employees. This article will guide you through these new eligibility changes and highlight what employers need to know.



Eligibility Prior to the SECURE Act 2.0

Before 2020, businesses were allowed to exclude employees from their retirement plan if they worked fewer than 1,000 hours during the plan year. The original SECURE Act from 2019 made strides in this area by requiring employers to include long-term, part-time employees in the company’s retirement plan if they worked at least 500 hours per year for three consecutive years.

Now, with the SECURE Act 2.0, even more Americans will be able to participate in their employer’s retirement plan.

How Have Eligibility Requirements Changed?

The SECURE Act 2.0 has allowed long-term, part-time employees over the age of 21 who work between 500 and 999 hours per year for two consecutive years to be eligible for their employer's retirement plan.

What Is the Timeline for Compliance?

Given the original SECURE Act and the updates made with SECURE 2.0, there are different timelines based on the business’s plan start date.


Businesses are not required to provide a match or make contributions towards a long-term, part-time employee’s account. However, once an employee has met the eligibility service requirement, they must be allowed to enroll in their employer’s retirement plan no later than:

For plans on a calendar year: either January 1 or July 1 following when the eligibility requirements were met

For plans not on a calendar year: either the first day of the plan year or the first day of the seventh month of the plan year following when the eligibility requirements were met

For example, take long-term, part-time employee Tim, who has just met eligibility requirements on March 16 of the current year.

If his employer has a plan that follows a calendar year—January 1 to December 31—he will be allowed to enroll in the plan on July 1.

If his employer has a plan that does not follow a calendar year, and for example, the employer’s plan year is April 1 to March 31, he will be allowed to enroll in the plan starting October 1, the first day of the seventh month of the plan year.

After a long-term part-time employee has met the participation requirements, they continue to be eligible for the plan, even if they work less than 500 hours in the following years. For example, if Tim only works 200 hours the year after becoming eligible and enrolling in his company’s retirement plan, he still remains eligible for the plan.

Tracking Eligibility

Employers have the option to manually count and track the service hours of long-term, part-time employees to determine if and when they become eligible. However, for some employers, tracking these employee hours is difficult or even impossible. To simplify this process, SECURE 2.0 has allowed two alternative methods that employers can choose from to determine employees’ eligibility:

1. The Elapsed Time Method: An employee becomes eligible after completing one year of service, and hours worked are not taken into account. 

Using the above example, if Tim started working on March 15, he would become eligible one year after his first day of work, on March 15 of the following year.

2. Hours Equivalency Methods: An employee is credited with hours of service based on certain standards, such as crediting a predetermined number of hours for each day, week, or month of service performed, regardless of the actual hours worked.

For example, if Tim's employer credits all part-term employees 20 hours per week, he will always receive 20 hours per week. This stays true regardless of the hours Tim actually worked, whether it was 0 hours or 40 hours.

What Employers Need to Do

Touch Base With Professionals

Check in with your service provider (third party administrator or recordkeeper) and financial advisor, if you have one, to ensure your plan aligns with the new eligibility requirements and that your plan documents are up to date.

Track Employees’ Hours

If you plan to track long-term, part-time employees' service hours manually—instead of using an elapsed time or hours of equivalency method—be sure to start tracking hours as soon as possible, depending on your plan year. This information is vital in determining whether or not certain employees will become eligible for your plan.

Some service providers will track and manage employee hours for you. Vestwell partners with dozens of payroll providers that supply your employees’ hours of service directly to us. We track this service and notify employees directly when they are eligible to enroll in your company’s plan.

Conclusion

The nation’s retirement savings gap presents a crisis for workers—according to the 2022 Survey of Consumer Finances (SCF), almost half of American households have nothing saved for retirement. The SECURE Act 2.0 represents a significant shift towards inclusive retirement planning, expanding accessibility for more employees to save for their future, including long-term, part-time employees.

Transitioning to meet these updated eligibility requirements gives employers a prime opportunity to support these efforts to close the nation's savings gap. By doing so, businesses not only comply with federal regulations but will also invest in the financial well-being of their employees, fostering a more engaged and loyal workforce.

SECURE 2.0 for Employers: A Guide to Retirement Plan Eligibility for Part-Time Employees 

Workplace retirement benefits are no longer just a nice-to-have addition to a job offer—they have become a fundamental aspect of employee recruitment and retention.

Vestwell, a modern savings platform building a comprehensive suite of solutions across retirement, health, and education, surveyed 1,200 savers across the United States for our annual “

We learned that employer-sponsored retirement plans are a priority for employees—they’ve evolved from a bonus perk to a non-negotiable requirement.

In this article, we’ll explore how workers are turning to their employers for help amid current economic challenges and highlight the opportunities businesses have to strengthen their competitive edge while providing meaningful solutions for employees. Let's dive in.

In the years following the pandemic, the economy has presented challenges to workers across the nation. From the 

, individuals are no doubt feeling financial pressure. This reality is becoming increasingly hard to ignore, with everyday expenses steadily climbing and the value of hard-earned wages struggling to keep pace.

Our survey revealed that 76% of savers are stressed about their financial situation. 

Whether it’s struggling to pay rent, making student loan payments on time, or keeping up with the increasing cost of essentials, employees across the board find themselves facing economic strain.

79% of survey respondents reported that inflation has impacted their ability to save. 

Employees are finding themselves in a position where saving is a challenge—be it for a down payment on a first home, building up their emergency savings, or setting aside money for retirement.

Employees Are Prioritizing Retirement Savings Despite Economic Challenges

In spite of these challenges, workers are still prioritizing their retirement savings. In fact, they wish they could be saving more.

 The results of our survey reveal a clear gap between savers’ current deferral rates and their perceived ideal savings rates. Among Vestwell 401(k) and 403(b) account holders, the average deferral rate in 2023 was 6.4%. 

While 62% of savers believe they should defer 10% or more of their salary to retire comfortably, only 34% of savers actually contribute to that degree.

This discrepancy points to a broader issue: contributing to retirement savings, among other living expenses, continues to be a challenge for many. 

40% of respondents reported their biggest concern when it comes to saving for retirement is that they cannot afford to save enough.

 A higher salary and employer match were identified as key motivators for respondents to increase their retirement savings.

Vestwell's 401(k) and 403(b) saver data provide deeper insight into retirement saving trends across generations. The average annual contribution amount for each generation on our platform has shown resilience despite economic challenges, with figures staying within $2,000 of the levels in recent years.

This data underscores the continued commitment to retirement savings across all age groups, further emphasizing the essential role of workplace retirement plans.

Amid this increased financial stress and economic uncertainty, savers are turning to their employers for support with their retirement savings. And they’re not just asking for help, they’re expecting it.

Employees increasingly view company-sponsored retirement plans as essential, not optional. 

85% of Vestwell’s survey respondents expect their employer to offer retirement benefits, a notable increase from the 72% of respondents who responded similarly in the prior year. It’s clear that employee demand for workplace financial benefits is growing quickly, and employers will need to adapt to remain competitive.

Employers Can Benefit From Offering a Plan

The good news for employers in all this? There are key opportunities and advantages for businesses—such as improved employee performance, increased recruiting and retention capabilities, and the potential for certain tax advantages—when they expand their benefits package to include a retirement plan.

Many employees say that their financial stress has hindered their overall health and ability to work. In fact, among employees who report they are stressed about their finances, over 48% say it has impacted their mental health, 33% note their sleep has suffered, and 11% indicate their work performance has been adversely affected. By offering a retirement plan, employers can not only illustrate a commitment to their employees but also, in the long run, have workers who may be more focused at work.

In addition to reducing stress and improving employee well-being, company-sponsored retirement plans are a powerful recruiting and retention tool. 

Retirement plans are a must-have for employees when selecting an employer in today’s competitive job market.

 Despite a challenging economy, employees are making it clear that saving for their later years is still a major priority. Vestwell survey respondents also indicated an increased employer 401(k) match as a top reason to consider a new employer, second only to a higher salary. To attract and retain top talent, businesses must align their benefits package with the changing demands of employees.

On top of that, our survey revealed that 

89% of employees would be more likely to continue working for an employer that offered a retirement benefit

. These data indicate that workplace retirement plans are more than just a perk; they are a fundamental aspect of employee satisfaction and retention.

Conclusion: The Future of Workplace Financial Wellness

As retirement savings continue to be a top priority for American workers, employers are poised to play a pivotal role in shaping more robust and accessible retirement savings solutions. By adding a retirement plan to their company’s benefits package, employers can attract talent, improve employee retention and satisfaction, and demonstrate a lasting commitment to the financial health of their team.

With improvements in technology and additional tax credits for employers introduced in the 

, it is now more affordable for businesses to offer retirement plans and employer matches.

 to view the full “Vestwell Savings Industry Report” and learn more about the saving trends that are shaping workplace financial wellness.

Ready to level up your workplace benefits package? 

Workplace retirement benefits are no longer just a nice-to-have addition to a job offer—they have become a fundamental aspect of employee recruitment and retention.

Vestwell, a modern savings platform building a comprehensive suite of solutions across retirement, health, and education, surveyed 1,200 savers across the United States for our annual “Vestwell Savings Industry Report.” We learned that employer-sponsored retirement plans are a priority for employees—they’ve evolved from a bonus perk to a non-negotiable requirement.

In this article, we’ll explore how workers are turning to their employers for help amid current economic challenges and highlight the opportunities businesses have to strengthen their competitive edge while providing meaningful solutions for employees. Let's dive in.



Current Economic Conditions

In the years following the pandemic, the economy has presented challenges to workers across the nation. From the sharp rises in inflation to high interest rates, individuals are no doubt feeling financial pressure. This reality is becoming increasingly hard to ignore, with everyday expenses steadily climbing and the value of hard-earned wages struggling to keep pace.

Our survey revealed that 76% of savers are stressed about their financial situation. Whether it’s struggling to pay rent, making student loan payments on time, or keeping up with the increasing cost of essentials, employees across the board find themselves facing economic strain.

On top of that, 79% of survey respondents reported that inflation has impacted their ability to save. Employees are finding themselves in a position where saving is a challenge—be it for a down payment on a first home, building up their emergency savings, or setting aside money for retirement.

Employees Are Prioritizing Retirement Savings Despite Economic Challenges

In spite of these challenges, workers are still prioritizing their retirement savings. In fact, they wish they could be saving more. The results of our survey reveal a clear gap between savers’ current deferral rates and their perceived ideal savings rates. Among Vestwell 401(k) and 403(b) account holders, the average deferral rate in 2023 was 6.4%. While 62% of savers believe they should defer 10% or more of their salary to retire comfortably, only 34% of savers actually contribute to that degree.

This discrepancy points to a broader issue: contributing to retirement savings, among other living expenses, continues to be a challenge for many. In fact, 40% of respondents reported their biggest concern when it comes to saving for retirement is that they cannot afford to save enough. A higher salary and employer match were identified as key motivators for respondents to increase their retirement savings.

Generational Saving Trends

Vestwell's 401(k) and 403(b) saver data provide deeper insight into retirement saving trends across generations. The average annual contribution amount for each generation on our platform has shown resilience despite economic challenges, with figures staying within $2,000 of the levels in recent years.

This data underscores the continued commitment to retirement savings across all age groups, further emphasizing the essential role of workplace retirement plans.

Savers Are Turning to Employers for Help

Amid this increased financial stress and economic uncertainty, savers are turning to their employers for support with their retirement savings. And they’re not just asking for help, they’re expecting it.

Employees increasingly view company-sponsored retirement plans as essential, not optional. 85% of Vestwell’s survey respondents expect their employer to offer retirement benefits, a notable increase from the 72% of respondents who responded similarly in the prior year. It’s clear that employee demand for workplace financial benefits is growing quickly, and employers will need to adapt to remain competitive.

Employers Can Benefit From Offering a Plan

The good news for employers in all this? There are key opportunities and advantages for businesses—such as improved employee performance, increased recruiting and retention capabilities, and the potential for certain tax advantages—when they expand their benefits package to include a retirement plan.

Improve Employee Performance

Many employees say that their financial stress has hindered their overall health and ability to work. In fact, among employees who report they are stressed about their finances, over 48% say it has impacted their mental health, 33% note their sleep has suffered, and 11% indicate their work performance has been adversely affected. By offering a retirement plan, employers can not only illustrate a commitment to their employees but also, in the long run, have workers who may be more focused at work.

Recruit & Retain Top Talent

In addition to reducing stress and improving employee well-being, company-sponsored retirement plans are a powerful recruiting and retention tool. Retirement plans are a must-have for employees when selecting an employer in today’s competitive job market. Despite a challenging economy, employees are making it clear that saving for their later years is still a major priority. Vestwell survey respondents also indicated an increased employer 401(k) match as a top reason to consider a new employer, second only to a higher salary. To attract and retain top talent, businesses must align their benefits package with the changing demands of employees.

On top of that, our survey revealed that 89% of employees would be more likely to continue working for an employer that offered a retirement benefit. These data indicate that workplace retirement plans are more than just a perk; they are a fundamental aspect of employee satisfaction and retention.

Conclusion: The Future of Workplace Financial Wellness

As retirement savings continue to be a top priority for American workers, employers are poised to play a pivotal role in shaping more robust and accessible retirement savings solutions. By adding a retirement plan to their company’s benefits package, employers can attract talent, improve employee retention and satisfaction, and demonstrate a lasting commitment to the financial health of their team.

With improvements in technology and additional tax credits for employers introduced in the SECURE Act 2.0, it is now more affordable for businesses to offer retirement plans and employer matches.

Click here to view the full “Vestwell Savings Industry Report” and learn more about the saving trends that are shaping workplace financial wellness.

Vestwell Savings Report: The Evolution of Workplace Retirement Plans From Perk to Prerequisite

The Empire State is building a brighter future for New Yorkers.

 of New York State’s private-sector employees lack access to a workplace retirement plan. 

To address this gap, most New York business owners will soon be required by law to offer a qualified, employer-sponsored retirement plan or automatically enroll their employees in the 

In this article, we’ll answer some questions you may have about the New York State Secure Choice Savings program and explain how it affects New York businesses.

How Does New York State Secure Choice Savings Work?

New York State Secure Choice Savings is a government-sponsored savings program created to help employees working in New York build savings for retirement. 

New York business owners who meet certain criteria will be required by law to offer a qualified, employer-sponsored retirement plan or enroll their employees in the program.

New York employees will make contributions to the program through automatic deductions from their paycheck into a Roth individual savings account (Roth IRA) unless they choose to opt out. 

The program is overseen by the New York Secure Choice Savings Board but administered by private sector partners. The program is currently under development, with no set launch date.

New York State Secure Choice Savings website

, once the program launches, employers who meet the following criteria are required to register for the program or certify an exemption:

Have been in business for at least 2 years

The program is under development, and there is no registration requirement at this time.

Non-compliance may result in an investigation and penalties.

Who Is Eligible to Save With the New York State Secure Choice Savings Program?

Any individual who is 18 years or older and has income or W-2 wages in the state of New York is eligible to participate in New York State Secure Choice Savings.

 Both full-time and part-time employees are eligible.

The New York State Secure Choice Savings Program represents a notable development in retirement planning for New York workers. Automatic enrollment and contributions made directly through payroll deductions simplify the process of setting aside funds for retirement.

Once it launches, the program will require businesses with 10 or more employees that have been operating for two or more years to either offer a plan or certify an exemption, so it’s important for New York employers to familiarize themselves with the program details and requirements.

The Empire State is building a brighter future for New Yorkers.

More than half of New York State’s private-sector employees lack access to a workplace retirement plan. To address this gap, most New York business owners will soon be required by law to offer a qualified, employer-sponsored retirement plan or automatically enroll their employees in the New York State Secure Choice Savings program.

In this article, we’ll answer some questions you may have about the New York State Secure Choice Savings program and explain how it affects New York businesses.

How Does New York State Secure Choice Savings Work?

New York State Secure Choice Savings is a government-sponsored savings program created to help employees working in New York build savings for retirement. New York business owners who meet certain criteria will be required by law to offer a qualified, employer-sponsored retirement plan or enroll their employees in the program.

New York employees will make contributions to the program through automatic deductions from their paycheck into a Roth individual savings account (Roth IRA) unless they choose to opt out. The money in the account will grow tax-free, and employees won't have to pay income tax on any money they withdraw from their account during retirement.

The program is overseen by the New York Secure Choice Savings Board but administered by private sector partners. The program is currently under development, with no set launch date.

Which Businesses Are Affected?

According to the New York State Secure Choice Savings website, once the program launches, employers who meet the following criteria are required to register for the program or certify an exemption:

Have 10 or more workers

Have been in business for at least 2 years

Does not currently offer a qualified, employer-sponsored retirement plan to their employees

Registration Deadline

The program is under development, and there is no registration requirement at this time.

Penalties

Non-compliance may result in an investigation and penalties.

Who Is Eligible to Save With the New York State Secure Choice Savings Program?

Any individual who is 18 years or older and has income or W-2 wages in the state of New York is eligible to participate in New York State Secure Choice Savings. Both full-time and part-time employees are eligible.

The program is voluntary for employees, and they can change their contribution amount or opt-out at any time.

Conclusion

The New York State Secure Choice Savings Program represents a notable development in retirement planning for New York workers. Automatic enrollment and contributions made directly through payroll deductions simplify the process of setting aside funds for retirement.

Once it launches, the program will require businesses with 10 or more employees that have been operating for two or more years to either offer a plan or certify an exemption, so it’s important for New York employers to familiarize themselves with the program details and requirements.



The New York State Secure Choice Savings Program: Everything You Need to Know

Female advisors are in a unique position to positively impact the financial future of other women. In Vestwell’s recent webinar, “

panelists Tali Vaughn, Regional Vice President, Sales & Consulting at EGPS, Tina Sanchez, Managing Director, Head of DC National Accounts at BlackRock, and Bonnie Treichel, Founder and Chief Solutions Officer of Endeavor Retirement, shared personal stories and advice around supporting women in pursuit of financial wellness.

In this blog, we’ll discuss the top insights regarding 

how female financial advisors can grow their businesses while educating and advocating for women. 

We’ll also highlight some of the key takeaways from the webinar and explore the impact of recent legislative changes (SECURE Act 2.0) on women and their finances. Let’s jump in.

” webinar, Vaughn, Sanchez, and Treichel shared unique industry insights and personal stories of growth relating to women and savings. 

Here are the essential takeaways for female financial advisors.

One of the keys to a successful practice is earning and keeping the trust of your clients. Trust grows from authenticity, and long-lasting client relationships are built with deep connections and a shared understanding of what’s important. 

Women are generally strong communicators with high levels of empathy, so leverage those skills to foster great relationships with your clients. 

It’s the personal connections and experiences between you and your clients that are remembered and that build ongoing trust.

Authenticity always resonates, and women tend to gravitate towards other women when seeking advice. 

Women advisors can advocate for their female clients, encouraging more conversations around finances and the importance of vocalizing your priorities in life.

Regional Vice President, Sales & Consulting, EGPS

What are you passionate about, or have special expertise in? Is there a particular demographic you feel connected to? Maybe it’s women-owned businesses, retirees, or underserved communities. Creating a niche or specialized focus can help you gain clients who need your expertise. Think of this as your “personal superpower.”

Founder and Chief Solutions Officer, Endeavor Retirement

Serving on committees and boards is another great way to expand your network and your reach to potential clients who share your interests and values. I am a big fan of the book 

Essentialism: The Disciplined Pursuit of Less

, by Greg McKeown. “Essentialism is the art of doing less, but better.” The book talks about doing more of what you are uniquely qualified to do, and less of everything else. It isn’t just about success; it’s about living a life of meaning and purpose. 

Hone in on what you are uniquely qualified to do, and leverage that strength and passion in growing your practice.

Let Your Personal Brand Tell a Story Worth Remembering

We live in a highly digital world with an abundance of information at our fingertips. How do you make yourself memorable, so you stand out from others in your field?

 last year about the different types of “attention,” and how some activities hold our attention better. Science tells us one of the most reliable ways of sustaining attention is through storytelling. When a story fully captivates our attention, it releases the empathy-related chemical oxytocin in our brains.

Vaughn explained, “I've branded myself as a nerd…If you want to talk about Secure 2.0, I'm game for it. As part of my brand and who I am, what people turn to me for is to be that nerd...As soon as regulations are released, I know everything to do with the regulations and how they're going to apply. TPAs are not something that a lot of people even know exists...I have to set myself apart and be able to be that resource for my referral partners and my friends in the industry.”

Let your personal brand tell a story that engages clients and prospects, and reminds them why they should do business with you.

In addition to employing empathy, identifying your superpower, and leaning into your personal brand, there's another area where female financial advisors can support women: understanding the implications of recent legislative changes.

The SECURE Act 2.0, representing the most significant change to retirement legislation in 50 years, offers specific provisions that can benefit women immensely. 

The Act includes enhanced benefits for long-term, part-time workers, the majority of whom 

It also includes tax credits for small companies offering retirement benefits to military spouses. With frequent relocations, military spouses often struggle to maintain consistent employment, affecting their eligibility for retirement plans. Given that 

 of military spouses are women, SECURE 2.0's focus on making retirement plan participation more accessible for them is particularly impactful.

Additionally, SECURE 2.0 waives the 10% IRS tax penalty (up to $10,000 or 50% of vested account value) for victims of domestic abuse, 85% of whom are women.

Advisors need to ensure women are a part of the conversation, particularly as household wealth starts to shift, in part due to women outliving men on average by 

Conclusion: Supporting Women's Financial Wellness

Empowering women's financial wellness begins with the shared understanding of the “triple whammy,” as Sanchez calls it, referring to the gender pay gap, the employment gap, and the longevity gap. Recognizing and addressing these interconnected challenges is the first step in crafting financial strategies that truly serve women's unique needs.

Managing Director, Head of DC National Accounts, BlackRock

In closing, continue to lift up one another. Celebrate your success, as well as the success of your colleagues and clients, and you will attract a community of like-minded women seeking and celebrating success as well.

 to watch a full recording of Vestwell’s “The Power of Women” webinar.

Female advisors are in a unique position to positively impact the financial future of other women. In Vestwell’s recent webinar, “The Power of Women,” panelists Tali Vaughn, Regional Vice President, Sales & Consulting at EGPS, Tina Sanchez, Managing Director, Head of DC National Accounts at BlackRock, and Bonnie Treichel, Founder and Chief Solutions Officer of Endeavor Retirement, shared personal stories and advice around supporting women in pursuit of financial wellness.

In this blog, we’ll discuss the top insights regarding how female financial advisors can grow their businesses while educating and advocating for women. We’ll also highlight some of the key takeaways from the webinar and explore the impact of recent legislative changes (SECURE Act 2.0) on women and their finances. Let’s jump in.

Strategies for Success

During our “The Power of Women” webinar, Vaughn, Sanchez, and Treichel shared unique industry insights and personal stories of growth relating to women and savings. Here are the essential takeaways for female financial advisors.

Lead With Empathy and Authenticity

One of the keys to a successful practice is earning and keeping the trust of your clients. Trust grows from authenticity, and long-lasting client relationships are built with deep connections and a shared understanding of what’s important. Women are generally strong communicators with high levels of empathy, so leverage those skills to foster great relationships with your clients. It’s the personal connections and experiences between you and your clients that are remembered and that build ongoing trust.

Authenticity always resonates, and women tend to gravitate towards other women when seeking advice. Women advisors can advocate for their female clients, encouraging more conversations around finances and the importance of vocalizing your priorities in life.

Identify Your Superpower

What are you passionate about, or have special expertise in? Is there a particular demographic you feel connected to? Maybe it’s women-owned businesses, retirees, or underserved communities. Creating a niche or specialized focus can help you gain clients who need your expertise. Think of this as your “personal superpower.”

Serving on committees and boards is another great way to expand your network and your reach to potential clients who share your interests and values. I am a big fan of the book Essentialism: The Disciplined Pursuit of Less, by Greg McKeown. “Essentialism is the art of doing less, but better.” The book talks about doing more of what you are uniquely qualified to do, and less of everything else. It isn’t just about success; it’s about living a life of meaning and purpose. Hone in on what you are uniquely qualified to do, and leverage that strength and passion in growing your practice.

Let Your Personal Brand Tell a Story Worth Remembering

We live in a highly digital world with an abundance of information at our fingertips. How do you make yourself memorable, so you stand out from others in your field?

Forbes did an article last year about the different types of “attention,” and how some activities hold our attention better. Science tells us one of the most reliable ways of sustaining attention is through storytelling. When a story fully captivates our attention, it releases the empathy-related chemical oxytocin in our brains.

Vaughn explained, “I've branded myself as a nerd…If you want to talk about Secure 2.0, I'm game for it. As part of my brand and who I am, what people turn to me for is to be that nerd...As soon as regulations are released, I know everything to do with the regulations and how they're going to apply. TPAs are not something that a lot of people even know exists...I have to set myself apart and be able to be that resource for my referral partners and my friends in the industry.”

Let your personal brand tell a story that engages clients and prospects, and reminds them why they should do business with you.

Understand How SECURE 2.0 Benefits Women

In addition to employing empathy, identifying your superpower, and leaning into your personal brand, there's another area where female financial advisors can support women: understanding the implications of recent legislative changes.

The SECURE Act 2.0, representing the most significant change to retirement legislation in 50 years, offers specific provisions that can benefit women immensely. The Act includes enhanced benefits for long-term, part-time workers, the majority of whom are women.

It also includes tax credits for small companies offering retirement benefits to military spouses. With frequent relocations, military spouses often struggle to maintain consistent employment, affecting their eligibility for retirement plans. Given that over 90% of military spouses are women, SECURE 2.0's focus on making retirement plan participation more accessible for them is particularly impactful.

Additionally, SECURE 2.0 waives the 10% IRS tax penalty (up to $10,000 or 50% of vested account value) for victims of domestic abuse, 85% of whom are women.

Advisors need to ensure women are a part of the conversation, particularly as household wealth starts to shift, in part due to women outliving men on average by almost 6 years.

Conclusion: Supporting Women's Financial Wellness

Empowering women's financial wellness begins with the shared understanding of the “triple whammy,” as Sanchez calls it, referring to the gender pay gap, the employment gap, and the longevity gap. Recognizing and addressing these interconnected challenges is the first step in crafting financial strategies that truly serve women's unique needs.

In closing, continue to lift up one another. Celebrate your success, as well as the success of your colleagues and clients, and you will attract a community of like-minded women seeking and celebrating success as well.

Click here to watch a full recording of Vestwell’s “The Power of Women” webinar.

The Power of Women: How Female Advisors Can Make a Difference

From coffee orders customized to the shot of espresso to curated recommendations about what to watch next on your favorite streaming services, personalization is fast becoming the expectation. Why should our finances be any different?

Vestwell surveyed 1,200 savers across the United States for our annual “

.” Our findings revealed a trend among savers:

 a growing preference for personalized financial guidance via digital tools, managed accounts, and financial advisors.

Employees have unique preferences and requirements. Some thrive on tech solutions, while others prefer a human connection. Financial wellness is not one-size-fits-all, and looking forward, savers appear to be searching for more tailored approaches to managing their finances.

In this article, we discuss the opportunities employers have to stand out by providing the personalized support their employees are looking for. 

The Digital Transformation of Workplace Savings

As part of the trend toward personalization, savers are increasingly interested in leveraging digital tools for managing their personal finances. 

From coffee orders customized to the shot of espresso to curated recommendations about what to watch next on your favorite streaming services, personalization is fast becoming the expectation. Why should our finances be any different?

Vestwell surveyed 1,200 savers across the United States for our annual “Vestwell Savings Industry Report.” Our findings revealed a trend among savers: a growing preference for personalized financial guidance via digital tools, managed accounts, and financial advisors.

Employees have unique preferences and requirements. Some thrive on tech solutions, while others prefer a human connection. Financial wellness is not one-size-fits-all, and looking forward, savers appear to be searching for more tailored approaches to managing their finances.

In this article, we discuss the opportunities employers have to stand out by providing the personalized support their employees are looking for. Let’s dive in.

The Digital Transformation of Workplace Savings

As part of the trend toward personalization, savers are increasingly interested in leveraging digital tools for managing their personal finances. 65% of respondents indicated that an online savings platform that enables you to check your balance in real time would be helpful. This finding reflects a broader shift toward immediacy and transparency in financial management.

The Advantages of Managed Accounts

Managed accounts are a feature that helps tailor investment portfolios to individuals’ specific situations. They use information such as age, account balance, salary, savings rate, outside accounts, and risk tolerance, to suggest personalized investment portfolios.

Managed accounts stand out because they offer personalization at a relatively low cost, making it more accessible to a broader audience. By analyzing a wide range of factors, the technology can dynamically adjust to suggest an optimal portfolio, taking into account the saver’s life changes and shifts in financial goals. This approach not only helps create a more personalized and engaging saving experience but also empowers savers to take control of their financial future with confidence.

A Growing Preference for Customized Financial Guidance

As savers seek tailored guidance that aligns with their unique financial goals and situations, they’re turning to a variety of sources, including friends and family, internet research, and financial advisors.

While savers are increasingly leveraging digital tools when managing their finances, they also seem to value human expertise. Technology offers convenience and immediacy, but the complex nature of financial planning often requires professional guidance that only a financial advisor can provide.

A notable 41% of savers surveyed by Vestwell do not currently work with a financial advisor but plan to in the future. Among those who plan to work with an advisor, 41% intend to find one through referrals from friends or family, 21% through internet research, and 19% through their employer.

Savers are not just looking for information; they are seeking out trustworthy advice that is specifically tailored to their individual circumstances, goals, and challenges. Employers can elevate their benefit offerings by providing access to a financial advisor and helping their workforce get the personalized and professional guidance they’re looking for.



Personalization at Scale

Savers are seeking more informed and efficient ways to navigate their finances. A combination of user-friendly digital tools and professional advice has become central to effective financial planning and wealth management.

This trend presents an opportunity for employers to redefine their benefits package. A commitment to personalized financial wellness underscores an employer's dedication to their team's long-term success and stability, establishing a culture of care and support that extends beyond the workplace. By adopting a holistic, scalable approach to financial wellness that includes access to digital tools, managed accounts, and financial advisors, businesses can improve employee satisfaction—and retention.

Conclusion: The Future of Workplace Financial Wellness

To remain competitive, employers can adapt their financial wellness programs to offer a blend of digital tools and access to professional advisory services that allow for personalization at scale. The future of workplace financial wellness lies in customization and flexibility, empowering employees to choose the paths that best suit their financial situations and aspirations.

Click here to view the full “Vestwell Savings Industry Report” and learn more about the saving trends that are shaping workplace financial wellness.

Featured Resources

Featured Resources

Featured Resources

2024 Vestwell Savings Industry Report

Explore insights from Vestwell's annual saver survey.

What's New

The Delaware EARNS Program: Everything You Need to Know

SECURE 2.0 for Employers: A Guide to Retirement Plan Eligibility for Part-Time Employees

Vestwell Savings Report: The Evolution of Workplace Retirement Plans From Perk to Prerequisite

The New York State Secure Choice Savings Program: Everything You Need to Know

The Power of Women: How Female Advisors Can Make a Difference

Vestwell Savings Report: Embracing Personalized Financial Wellness Solutions in the Workplace

SECURE 2.0 for Employers: A Guide to the Retirement Plan Auto-Enrollment Requirement

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