The number of plan sponsors offering individual financial counseling and advice jumped from 50% in 2011 to 61% in 2012, according to the 12th Annual 401(k) Benchmarking Survey conducted by Deloitte, the International Foundation of Employee Benefit Plans (IFEBP) and the International Society of Certified Employee Benefit Specialists (ISCEBS).
Other finding include:
• 86% of plan sponsors who implemented automatic enrollment have seen a positive impact on plan participation by employees.
• 53% now offer a Roth feature — a 6% jump from 2011.
The survey also shows a 7% increase in the number of plan sponsors conducting retirement readiness assessments for employees – jumping from 25% in 2011 to 32% in 2012.
Approximately two-thirds of plan sponsors believe that less than 10% of their employees take advantage of the educational resources they offer, the survey found. Clearly, more needs to be done to teach employees about saving for retirement. The key: simplifying retirement education and making it less daunting or intimidating to participants.
