The 1% Challenge: Baby Steps Go a Long Way in Your 401(k)

Increasing retirement plan participation has always been a priority for employers, plan providers and advisors. The motivations behind the push vary, from improving discrimination testing results or increasing plan assets for more bargaining power to simply bettering overall financial wellness. Yet boosting participation is a constant challenge, especially today in the midst of a global pandemic that’s caused many to lose jobs or take pay cuts.

So how can employers drive participation rates?

Many folks point to automatic enrollment and automatic deferral increases. These features have definitely had a positive impact on retirement participation and savings rates. But not all companies embrace the concepts. What’s a better way to move the needle? Click here for the 1% challenge.

Source: GoLocalProv
2-minute read.