When it comes to being consumers, Americans are in a class of their own. When it comes to saving, well, let's just say they aren't self-starters. In 2004, just 70.3% of eligible employees participated in 401(k) plans, according to Hewitt Associates, a human resources consulting company in Illinois. The results were even worse for younger workers, with just 46% under the age of 30 participating in defined contribution plans.

With fewer and fewer traditional defined benefit pension plans out there and the guaranteed cushion of Social Security looking shaky, 401(k) savings are likely to become an increasingly important source of workers' retirement income in the years to come. So how can companies–88% of which are even willing to kick in some matching funds–get workers to participate? The answer for a growing number of plan sponsors is to do it for them.


Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.