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.

Matt Eickman

Matt Eickman

Full Bio

Matthew loves to write. He also loves to think, though he’s probably a better writer than a thinker. He does not like to be on camera or in videos. This blog will allow him to write, challenge his ability to think, and, from time to time, test him with video blog entries.

He has a unique blend of legal and practical experience that helps us to serve our clients well. On the one hand, he has more than 12 years of private legal practice experience focusing exclusively on employee benefits, including time as a partner in an employee benefits boutique where he has represented clients in front of the DOL and IRS. On the other hand, he holds his FINRA Series 7 and 66 registrations and serves as the Director of ERISA Services for Qualified Plan Advisors.

Matthew likes to stay active. He provides fiduciary training, Investment Policy Statement design, and vendor oversight to our clients. He is an active member of the Employee Benefits Committee of the American Bar Association Tax Section, serving as Chair of the Defined Contribution Plans Subcommittee. He also has been appointed to the IRS TE/GE Gulf States Council and is a frequent speaker on regulatory developments, fiduciary responsibilities, and retirement readiness.

Most importantly, he stays active with his family. His wife, Laura, is the founder of REbeL, Inc., a not-for-profit organization. His three young boys are mixed up in far too many sports, and they enjoy traveling, watching college football, running with Dad, and rooting for the Huskers.
Matt Eickman
Share This