“The employer will match 50 percent of employee 401(k) contributions for the first 6 percent that an employee contributes. The company will not match more than 3 percent of the employee’s salary.”
Simple, right? Wrong.
Your 401(k) participants are listening politely, nodding their heads, and likely as confused as ever.
Four Seasons Financial Education recently revealed their “2016 Employee Financial Wellness Survey.” It found that the group retirement plan, such as a 401(k) or 403(b) plan, was the most difficult employer benefit to understand.
“This data tells us even more work and innovation are needed to help employees understand their employer retirement plans,” Travis Freeman, president of FSFE, said in a statment. “It likely requires a team effort between the employer, plan advisor and financial wellness program.”
In the survey, employees were also able to state they “fully understand all of their benefits.” The retirement plan was picked by 39 percent of employees, while 35 percent stated they fully understand their benefits.
The second most difficult benefit to understand, according to the survey, is the group health insurance plan, cited by 26 percent of employees. Third place was tied between Health Savings Account and Flexible Spending Account at 20 percent.
Life insurance was found to be the least confusing benefit.
The new FSFE survey also reviewed top financial goals, employer loyalty, benefits understanding, wellness statistics and more. The survey results can be found at.
Four Seasons Financial Education provides workplace financial wellness services to companies in the United States.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.