While it’s well documented that the majority of Americans aren’t saving enough for retirement, having access to a company sponsored 401(k) or 403(b) plan can greatly impact their retirement readiness.
According to our survey, employees are taking advantage of retirement plans when given the opportunity. 76.7% of those with a company sponsored plan are saving 4% or more of their salary each month (excluding any additional savings from a company match). Not only are those with access to a plan saving, but they also feel confident about decisions regarding their plan. In fact, 62.5% say they’re comfortable with their knowledge around their retirement plan, which means people are either educating themselves or receiving proper education from the plan administrator or sponsor. This highlights the critical role employers play in their employees’ financial future, since simply offering a retirement plan appears to have an immediate and real impact on both security and confidence.
In February 2019, Vestwell conducted a study of 672 employees who were eligible to participate in their company sponsored 401(k) or 403(b) plans, 499 of whom completed the survey in its entirety. The intent was to gauge perceptions of saving for retirement and better understand participant engagement with their plans.
Take a peek at Vestwell’s 2019 participant attitudes report to find out more about employee perceptions and how they engage with their plans.