Feb 06, 2012
--- Eighty-four percent of polled executives responsible
for 401(k) plans say only some or very few employees will be financially
prepared for retirement. ---
A
top goal for 401(k) plan sponsors for the second year in a row is improving
employees' financial planning for retirement, according to the 11th Annual
401(k) Benchmarking Survey conducted by Deloitte, the International Foundation
of Employee Benefit Plans (IFEBP) and the International Society of Certified
Employee Benefit Specialists (ISCEBS). Nearly two-thirds of respondents (64%)
believe their responsibility includes taking an interest in whether employees
are tracking towards a comfortable retirement.
To
encourage plan participants to make better use of their 401(k), nearly half of
plan sponsors (49%) are offering features that automatically increase
participants' contribution levels. However, nearly two-thirds (64%) of plan
sponsors report that fewer than 10% of participants take advantage of this
opportunity.
Additional
survey highlights include:
- Only 15% of respondents surveyed say less than half
their employees participate in a 401(k) plan.
- The majority of plan sponsors (70%) reported the
average age range of participants is between 41 and 50 years old,
representing a slight (4%) increase from the 2010 survey.
- Compared to the 2010 survey, the average participant
account balance has been flat or slightly down.
- Auto enrollment continues to grow; 56% of 401(k) plans
include an automatic enrollment feature, up 7% from 2010.