Of course you want to help employees save more for retirement — but what more can you do in these times of wage and hour freezes?
Good news: There are ways you can help employees ramp up their savings without taking a chunk out of your budget. A new study by Hewitt Associates reveals the most popular strategies being implemented today.
Here are the top four ways employers plan to update their 401(k)s before the calendars turn to 2011.
1. Aggressive enrollment
Currently, nearly 59% of employers automatically enroll workers in retirement plans (that’s already 8% more than 2009). And auto-enrollment numbers are expected to climb even higher: 27% of companies currently offering voluntary enrollment say they’ll make the switch to auto-enrollment before 2011 hits.
2. Escalation and rebalancing
Thirty-eight percent of employers plan to increase employee 401(k) contribution rates automatically — unless of course workers opt out.
In addition, another 46% of companies will add a rebalancing tool that’ll automatically shift participating employees’ investment portfolios to higher performing funds in an effort to ensure maximum performance.
Currently, 51% of employers help their workers select 401(k) investments — and another 42% plan to start this year.
Plus, 68% say they’ll offer more education about investing, as well as fund fees.
Note: The Department of Labor (DOL) has released new proposed regs on providing advice to retirement plan participants.
4. Roth and annuities
A quarter of employers plan to add a Roth 401(k) option this year (29% already offer one). And 28% of companies plan to add an annuity option (that’s in addition to the 14% already offering one).
What’s your company doing to help boost employees’ retirement savings? Let us know in the Comments Box below.