Have you considered adopting an automatic contribution provision for your retirement plan? Mutual of America's automatic enrollment guide, Helping Employees Meet Their Retirement Savings Needs, highlights the benefits of this plan feature and explores some options for you to consider as you look to help your employees meet their retirement savings needs.
The guide is filled with helpful examples and charts and covers key topics such as:
Helping Your Employees Save for the Future
As you know, over the past four decades there has been a significant shift in the responsibility for accumulating retirement savings from the employer to the individual. For example, defined benefit retirement plans accounted for 33% of total plans in 1975; however, by 2015, the number of these plans fell by more than 50% and represented less than 7% of total plans, while the number of defined contribution plans tripled.1 Yet, with the responsibility on individuals to save for retirement, only 56% of workers reported that they are currently doing so, according to the 2017 Retirement Confidence Survey.2
Automatic enrollment options offer plan sponsors an efficient and effective way to help overcome employee inertia by helping employees to participate in the plan and accumulate adequate retirement savings. In fact statistics show that the average of emplyees opting out of participation after being default enrolled is less than 10%.3
Questions? Contact Us
Developing a retirement program with the best overall design for an organization's employees requires in-depth knowledge of the business needs of the plan sponsor and their employees. Mutual of America offers the support of experienced consultants who can assist you in retirement plan design and educate your employees about determining their own risk tolerance level and investment time horizon based on their anticipated retirement date.
To learn more about retirement plan solutions, please contact your local Mutual of America Regional Office representative.
1 "Private Pension Plan Bulletin Historical Tables and Graphs 1975-2014," page 1, table 1 (Employee Benefits Security Administration, U.S. Department of Labor, September 2016).
2 "The 2017 Retirement Confidence Survey," page 11, figure 12 (Employee Benefit Research Institute, March 2017).
3 Plan Sponsor Council of America's (PSCA) 59th Annual Survey, page 56.
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