6 Trends Seen in America’s Retirement Plans

401k, retirement, HSA, participants, millennials

Ascensus released its annual survey.

Employer 401k matches and automatic features are a win for all involved. Anyone needing more evidence can find it in a new report that claims over 80 percent of retirement plan sponsors have opted to fund an employee match, up from 69 percent in 2015.

These plans are seeing participation rates 19 percent higher than those that don’t fund a match. Additionally, plans that offer both automatic enrollment and automatic increase features have an 80 percent participation rate.

It’s part of the findings from the annual trends survey released by recordkeeper and retirement plan provider-giant Ascensus on Wednesday, titled Inside America’s Savings Plans.

Ascensus analyzed data across its 47,000 retirement plans and 200,000 HSAs. The Pennsylvania-based company reports, among other things, that Millennials are beginning to outpace older generations in terms of saving, they really like HSAs, and 401ks still fall short of funding goals.

According to Ascensus:

Savers are making real progress toward their goals but are still facing an overall savings deficit.

Account owners and plan sponsors alike are seeing the value in making saving automatic.

“Americans are making progress as they save for life’s most important milestones and they are embracing the available investment tools of 401(k)s, 529 plans, and HSAs,” Bob Guillocheau, CEO and president of Ascensus, said in a statement. “We are thrilled to see the marked improvement across the board.”

  1. National, State, Metropolitan, and Nonmetropolitan Area Occupational Employment and Wage Estimates, May 2016, U.S. Bureau of Labor Statistics.
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