The “Less Is Not More” study set out to determine whether presenting retirement plan information in a more compact and accessible way increases participation and results in better investment decisions.
They are on track to replace 75% of their income, compared to 64% for Americans overall.
Additionally, the number of plans with an initial 6% deferral rate for automatic enrollment now surpass those with 3% as the initial rate.
In a frank conversation with PLANADVISER, Andrew Biggs points to some common misconceptions about retirement income replacement among lower income groups.
Participants who work with a traditional or online adviser are on track to replace 116% of their income. Those working with any paid adviser, 91%, and those with no adviser, 51%.
Employer contributions and loans are also prevalent, a Brightscope/ICI report says.
Men are saving an average of 8.9%, and women, 6.4%, PenFed Credit Union found in a survey
Only one-third are participating in their retirement plan
Concerned that workers are not saving enough, employers are hoping to improve their financial security, Willis Towers Watson found in a survey.
The detailed report is aimed at expanding opportunities to save and increasing access to lifetime income products, among other efforts.
More plans are auto enrolling at a greater than 3% default deferral rate, and 13% of plans are increasing deferrals at more than 1% annually, a PSCA survey found.
All employees would have 6% of their income contributed to a workplace retirement plan and have these contributions automatically escalated each year.
An American Century study also found that when offered the option of receiving either a 100% match on 3% of their retirement plan contributions or a 3% higher salary, 77% of pre-retirees chose the match.
While 66% of larger plans use automatic enrollment, only 51% of smaller plans do.