Employers reportedly express higher satisfaction after joining a pooled employer plan, including improved satisfaction with the plan’s adviser.
According to anew studyby The Standard, an insurance and finance company, 83% of employers expressed satisfaction with their PEP, while plan sponsor survey respondents reported a 40% increase in satisfaction with their adviser after joining.
The findings are based on an online survey of 300 employers at mid-sized U.S. companies, complied from January 3 through January 26.
The research also showed that employers reported a 26% increase in satisfaction with their retirement plan after joining a PEP, citing easier plan management and lower costs.
In addition, 80% of employers utilizing a PEP reported they looked at multiple alternative retirement plan providers before joining a PEP, according to the study.
After joining a PEP arrangement, 67% of employers said they saw a shift in topics they discussed with their providers, including spending less time discussing retirement plans.
The PEP market was created with the passage of the Setting Every Community Up for Retirement Enhancement Act of 2019, also known as the SECURE Act. As of December 2024, the PEP market hassurpassed $10 billion in assets, according to Cerulli Associates.
However, the Georgetown Center for Retirement Plan Initiatives estimates PEP assets grew to more than $17 billion as of December 31, 2024.
Debt is widespread among both Generation X and the Baby Boomers, forcing some members of the cohorts to put retirement plans on hold indefinitely, according to multiple recent surveys.
A Debt Epidemic
In February, National Debt Relief surveyed 1,000 Generation X and Baby Boomer Americans to understand the toll debt is taking on older Americans and the stark impact it is having on their ability to retire.
“Our findings reveal a troubling reality: Our nation’s growing consumer debt epidemic has left millions of older Americans feeling stressed about their debt, which has considerable impacts on their ability to build a comfortable financial future and their ability to retire,” said Natalia Brown, National Debt Relief’s chief compliance and consumer affairs officer, in a statement. “For many, what they’ve worked toward for decades feels out of reach.”
Among the notable facts in National Debt Relief’s report:
72% of respondents have accumulated at least some debt. More than 50% said their debt has “held them back” in life;
More than 50% reported feeling overwhelmed by debt and the fear they will never pay it off;
17% reported having an average of $9,144 in outstanding medical bills; and
45% of respondents said they carry a credit card balance. On average, they reported owing nearly $9,000 and paying $418 toward it each month.
Credit Card Survey
According to Debt.com’s annual survey of 1,000 Americans, for the second consecutive year, an average of one in every three people needs credit cards to make ends meet—and many are maxed out.
U.S. credit card balances have ballooned since the worldwide inflation surge began in March 2021. According to the Federal Reserve, Americans owe a record-high $1.21 trillion on credit cards. Debt.com’s latest research showed how that affects their credit card usage: 32% have maxed out their credit cards; 37% need their credit cards to make ends meet; 44% carried a larger monthly balance.
Those who have already maxed out their cards are most vulnerable. An average of eight out of 10 said they “would need to rely on credit card(s) if faced with a financial emergency.” Slightly more than 23% reported already owing more than $20,000.
Retirement: Elusive and Delayed
The National Debt Relief survey revealed that with so many still in debt, retirement is not within reach for many of them.
The average age of survey respondents was 61, yet they estimated needing an average of 12 more years to reach their savings goals—well beyond the Social Security Administration’s full retirement age of 67;
68% of those in debt said it has somewhat or significantly impacted their ability to retire;
67% of non-retired respondents said they believe they will need to keep working beyond their planned retirement age to support themselves and their families.
“Planning for retirement often starts later than it should, but earlier action can improve financial outcomes,” said Kaylee Ranck, the American College of Financial Services’ director of college research, in a statement. “Decisions made decades earlier can lay the groundwork for financial stability or create challenges that escalate over time. One growing concern is the number of older adults carrying significant debt into retirement. That’s not just a personal challenge, as it has ripple effects across families, communities and public systems. Empowering people with the right tools and guidance early on isn’t just smart; it’s essential to long-term financial well-being.”
In-Person Professional Advice Usage Rises, Digital Advice Plateaus
Two primary sources dominated report results as Americans’ “go-to” for financial support, according to a recent report from Hearts & Wallets. The top source is the individual or their spouse/partner, accounting for 47% of households. The second most common source is financial professionals, serving 25% of households. The use of financial professionals as a primary resource has risen by only four percentage points in the last 13 years, up from 21% in 2012.
