RESEARCH |

2023
PLANSPONSOR Participant Survey

Participants’ insights help plan sponsors optimize their benefits strategies.

Reported by PLANSPONSOR | Art by Federica Bordoni
Current Savings and Plan Access
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Current Savings and Plan Access

Retirement savings and participant plan access play pivotal roles in ensuring financial security and well-being during retirement. By diligently saving for retirement, participants will be able to maintain a comfortable lifestyle and cover essential expenses. Having access to a well-structured defined contribution plan provides an efficient way for individuals to accumulate funds over their working years. Plans with employer contributions and/or profit sharing and tax incentives motivate employees to contribute regularly and can assist with employee retention.

Employer Contributions to DC Plan Accounts

2023
2022
Match
70%
69%
Fixed/Profit sharing
15%
15%
Both match and fixed
6%
6%
No employer contribution
7%
6%
Employer contribution suspended
1%
1%
Unsure
3%
3%

A match remains the most popular type of employer contribution by far.

Contribution/Saving Rate

2023
2022
< 5%
48%
51%
5.1% – 7.0%
21%
18%
7.1% – 10.0%
12%
15%
>10%
15%
14%
Unsure
4%
3%

Contribution rates of <5% declined by 3 percentage points from the 2022 survey, and contributions of >10% increased by 1 percentage point from the 2022 survey.

How Current Contribution/Savings Rate Determined

2023
2022
Accepted the default
32%
37%
Wanted to receive maximum employer contribution
31%
28%
Saved maximum allowable by law
13%
11%
Targeted a specific level of savings
11%
12%
Received advice from spouse/friend/adviser
4%
4%
Automatically increased to the current level
4%
3%
Unsure
5%
5%

Five percentage points fewer respondents accepted the plan default rate compared with 2022; 3 percentage points more planned on deferring equal to the maximum employer contribution compared with 2022.

Total Household Retirement Savings

2023
2022
<$25,000
19%
20%
$25,000 – $49,999
14%
16%
$50,000 – $99,999
13%
13%
$100,000 – $149,999
9%
9%
$150,000 – $249,999
7%
6%
$250,000 – $499,999
10%
13%
$500,000 – $999,999
11%
8%
$1,000,000 – $1,500,000
6%
7%
>$1,500,000
6%
5%
Prefer not to answer
6%
4%

One percentage point more households have savings of $1,500,000-plus than in 2022.

Actions Taken in Prior 12 Months to Retirement Savings Plan

2023
2022
Increased deferral rate
48%
45%
Decreased deferral rate (but not to $0)
11%
10%
Changed investment allocation
15%
15%
Re-balanced account
14%
15%
Calculated retirement savings needs
15%
11%
Stopped contributing to the plan
7%
7%
No actions taken
26%
31%

Deferral rates from 2022 to 2023 increased by three percentage points.