Recent research from Cerilli finds that an employer’s matching contribution is the most influential factor motivating participants to save for retirement. Two-thirds (66%) of 401(k) participants indicate they would be very likely to increase contributions if their employer increased the matching formula. At the same time, only one-third (32%) would be very likely to increase their contributions if they received a personalized statement with financial projections showing inadequate retirement savings.
Participants most frequently indicate they began saving for retirement because their employer offered a matching contribution (46%), they could afford to start saving for retirement (44%), or they were automatically enrolled in their employer’s retirement savings plan (29%).
In addition to employer contributions and auto-enrollment features, participants can benefit from personal retirement planning advice. When planning for retirement, other than valuing their own research, participants are most likely (40%) to view one-on-one sessions with a professional advisor as “very helpful” while videos, articles, and employer communications are typically only seen as “somewhat helpful.”
Through matching contributions, auto-enrollment features, and participant education, employers play a key role influencing participants to save for retirement.
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