The Plan Sponsor Council of America wants you to celebrate 401(k) Day! This annual campaign urges plan sponsors to educate employees and encourage active participation in their plans.
Click here to quickly download and print a flyer:
Some key information to share with employees:
- 78% of participants support a combination of automatic enrollment and automatic contribution escalation.
- Many financial experts think you’ll need to replace 80% of your income to maintain the same standard of living in retirement.
- Nearly three-quarters (73%) think they should be contributing 10% or more to their plan to be on track for a financially secure retirement—in line with the recommendations of many industry experts. But among those, 70% missed their savings target last year.
- Nearly 9 in 10 workers feel it is a good idea for employers to offer matching contributions to retirement plans when workers can demonstrate they have made a student loan payment.
- ONLY 52% expect to retire when they want and/or with enough savings to last throughout their lifetime.
- When it comes to retirement decisions about 75% of participants would like to just push an easy button and hand everything over to a financial professional.
Historically, 401(k) day has been celebrated on the first Friday after Labor Day, but many companies have opted to choose their own 401(k) Day on a day or time of year that works best for their employees. Whenever you decide to celebrate, share the flyer via email, post it in common areas, or on your organization’s intranet, but also consider hosting fun activities or contests with a theme to help get the attention of your employees.
Click here to learn more about our employee benefit plan audit services.
Sources:
Employee Benefit Research Institute and Greenwald & Associates. (2020). 2020 Retirement Confidence Survey Summary Report. https://www.ebri.org/docs/default-source/rcs/2020-rcs/2020-rcs-summary-report.pdf?sfvrsn=84bc3d2f_7#:~:text=Workers’%20overall%20confidence%20in%20their,in%202018%20(Figure%201).
National Today. (2017–2020). National Today. Retrieved from National 401(k) Day – September 11, 2020: https://nationaltoday.com/national-401k-day/
Savology. (2020). Retirement Income Replacement: How Do I Know if I’m Ready to Retire? Retrieved from Savology: https://savology.com/retirement-income-replacement-percentage/#:~:text=As%20an%20income%20replacement%20percentage,taxes%20during%20your%20retired%20years
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About the Author: Michael Giess
