New research from the LIMRA Secure Retirement Institute reveals that workers from for-profit and not-for-profit organizations will save only enough in their defined contribution (DC) plans to receive the full company match.
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“The study demonstrates the powerful incentive a company match can have on employee behavior,” said Michael Ericson, LIMRA Secure Retirement Institute analyst, in a press release. “Institute research shows nearly half of American workers believe they are not saving enough for retirement, and four in 10 working households have less than $25,000 saved for retirement.
“Plan providers can help employers increase their employee’s savings behavior by recommending a ‘stretch match’ strategy, which would require an employee to save a higher percentage to attain the full company match.”