Success starts with a proactive philosophy
When it comes to helping participants, plan sponsors with a proactive philosophy find their plans to be more effective in achieving goals than plan sponsors who are hands-off.
|Achieve a financially secure retirement||47%||71%|
|Retire at target age||43%||70%|
|Improve attitude and motivation||50%||71%|
Imbalance between philosophy and action
Most plan sponsors feel a high level of responsibility for employee financial wellness (74%) but less than half of those surveyed take proactive measures (41%) to position participants for success.
Proactive plan design is trending
The percentage of plan sponsors offering automatic features has increased since 2013.
|Automatic contribution escalation||21%||38%|
Many are overlooking key target date fund evaluation criteria
What percentage of plan sponsors think these criteria are either “extremely” or “very” important?
Plan sponsors are at their best with proactive financial advisors
We surveyed plan sponsors—those with a proactive advisor/consultant, less proactive or without —about their confidence levels in plan design and overall plan decisions.
About our survey
We surveyed 838 plan sponsors from January through March, 2019. All respondents are key decision-makers for their organizations’ DC plans. All organizations represented have been in business for at least three years, offer a 401(k) or 403(b) plan to their domestic U.S. employees and have at least 10 full-time employees.