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.
A match remains the most popular type of employer contribution by far.
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.
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.
One percentage point more households have savings of $1,500,000-plus than in 2022.
Deferral rates from 2022 to 2023 increased by three percentage points.