In addition, 71 percent of workers find the idea of automatic enrollment to be appealing, but just 21 percent of plan sponsors offer it. The report posits that plan sponsors should be encouraged to adopt automatic features to help boost savings rates among employees.
Elsewhere, the report found that less than half of plan sponsors provide information about distribution options, planning materials, referrals to plan or IRA providers, educational resources, systematic withdrawals, or an annuity as a payout option as part of their plan. Micro companies, or those with between 10 to 99 employees, are less likely to offer these services.
Beyond 401(k)s, the Transamerica report also called for more employers to offer support for caregiving employees, with survey results showing more can be done to support caregiving employees such as compliance with the Family and Medical Leave Act.
Transamerica’s 16th annual retirement survey was conducted by Harris Poll and canvassed 1,022 employers—business executives at companies that employ at least 10 workers—and 4,550 workers ages 18 years or older who work at a company with at least 10 employees.
The Transamerica Center for Retirement Studies is a division of Transamerica Institute, a nonprofit, private foundation focused on educating the public on emerging trends surrounding retirement security in the U.S.