Findings from a Capital One survey about why employees do not participate in their employer-sponsored retirement plan offers opportunities for education, according to Stuart Robertson.
The language of “inertia” and “disengagement” are often used to describe the natural state of retirement plan participants, but new research from Wells Fargo suggests plan sponsors are also prone to settling with the status quo.
A detailed analysis prepared by Aon suggests the typical worker would have to start saving at age 25 and put away 16% of pay annually—including the employer retirement plan match—to achieve a stable retirement outlook by age 67.
An IALC report suggests plan sponsors apply educational resources—like seminars and informational fairs—to heighten employee participation.
The bills would allow for pooled employer plans, incentivize employers to adopt plans with automatic enrollment; allow employers to automatically enroll their workers in emergency savings accounts; and make it easier for individuals to automatically save their tax refunds.
Sixty-three percent of workers between the ages of 26 and 64 participated or had a spouse that participated in a retirement plan in 2014, according to the ICI.