Posted by Stacy Sandler and Scott Cole on August 27, 2013
Nearly 400 plan sponsors from a broad range of plan sizes participated in Deloitte’s 2012 Annual 401(k) Benchmarking Survey. The good news revealed in the survey: 401(k) account balances are on the uptick since their lows in 2008 and 2009, with 44% of plan sponsors indicating average balances over $75,000 — an all-time high. The downside is that this is still far short of what most employees will need for a comfortable retirement. This may be why 84% of plan sponsors surveyed cite “improving participant education” and 78% list “retirement readiness” among their top priorities. However, based on other findings revealed in the survey, along with some of our recent discussions with plan sponsors, there may be other, more effective opportunities for plan sponsors to increase the number of participants and improve the overall quality of participation.