Happy National Save for Retirement Week!

This is a week for celebrating the importance of American workers saving early and often – and recognizing the important role you, as a plan sponsor, play.

Your organization’s sponsorship of a retirement plan is significant. You’re a part of doing a good thing.

  • 73% of workers indicate they wouldn’t have saved as much for retirement if they didn’t have a 401(k) plan. 71% of retirees felt the same way. [1]
  • 84% of workers feel more confident about retiring because they contribute to a 401(k) plan. [2]
  • 82% of participants believe their employers should encourage employees to contribute to the company retirement plan. [3]

Employees must, must, must understand the importance of becoming savers as early as possible.

  • Consistent savers, on average, started at age 25, compared to age 33 for non-consistent savers. [4]
  • Those who have saved consistently for retirement have a median retirement savings more than seven times greater than the median savings of one who has not been consistent. [5]
  • Consistent saving breeds a more optimistic outlook about the future. Of workers 40 and older who were consistent savers, 71% believe they will have enough saved to live comfortably in retirement. [6]

Your employees would like additional education, planning assistance, and plan design assistance.

  • Most participants (81%) are interested in doing financial planning for retirement, but almost half do not have a plan. [7]
  • To help reach financial goals, employees say the most helpful resource is one-on-one guidance, followed by the desire for education and a customized plan. [8]
  • 61% of workers would like more education and advice from their employers on how to reach their retirement goals. [9]
  • 96% of participants who were automatically enrolled were satisfied. 97% of participants who experienced an automatic increase were satisfied. [10]

 


[1] Wells Fargo, Harris Poll, July-August 2016.

[2] Id.

[3] “2016 Defined Contribution Plan Participant Survey Findings”, J.P.Morgan Asset Management, October 2016.

[4] Wells Fargo, Harris Poll, July-August 2016.

[5] Id.

[6] Id.

[7] “2016 Defined Contribution Plan Participant Survey Findings”, J.P.Morgan Asset Management, October 2016.

[8] 2016 FSFE Employee Financial Wellness Survey, Four Seasons Financial Education.

[9] “Retirement Throughout the Ages: Expectations and Preparations for American Workers”, Transamerica Center for Retirement Studies, May 2015.

[10] 2016 Defined Contribution Plan Participant Survey Findings, J.P.Morgan Asset Management, October 2016.

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