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Corporate executives responsible for overseeing the retirement plans offered to their employees identified retirement readiness as one of their top priorities this past year, according to the 10th Annual 401(k) Benchmarking Survey conducted by Deloitte, the International Foundation of Employee Benefit Plans (IFEBP) and the International Society of Certified Employee Benefit Specialists (ISCEBS). Plan sponsors further called out retirement readiness as the issue they needed the most help with from retirement plan service providers.
Almost two-thirds (62 percent) of plan sponsors surveyed believe their responsibility includes taking an interest in whether employees are tracking towards a comfortable retirement (i.e., offering a retirement plan option that allows participants to plan for a reasonable replacement ratio). Sobering, however, only 15 percent of plan sponsors surveyed believe most employees will be prepared for retirement if they maintain the status quo.
“While plan sponsors are concerned with the retirement readiness of their employees they aren’t jumping at the chance to use the tools service providers are offering to manage this, according to our research,” said Stacy Sandler, principal, Deloitte Consulting LLP. “We believe retirement readiness will continue to be in the spotlight for years to come, as 401(k) account balances slowly rebound and participants become more educated regarding what they will need to retire.”
2010 ISCEBS President Susan D. Cranston of Manulife Financial said, “401(k) plan balances have slowly rebounded from the lows of 2008 and 2009. Nonetheless, surveyed participants indicated they are taking a cautious approach to their 401(k) plans before diving back in to increase contribution rates and resuming the level of activity seen in prior years.”
Spotlight on retirement readiness
10 year review
About the Survey
Deloitte’s 2010 401(k) Benchmarking Survey was conducted electronically in conjunction with the International Foundation and the International Society of Certified Employee Benefit Specialists (ISCEBS). More than 600 plan sponsors (653) participated in this year’s survey. Respondents were evenly distributed by geography, size, and ownership status (i.e., publicly or privately held).
About the International Foundation
The International Foundation of Employee Benefit Plans is a nonprofit organization dedicated to being a leading objective and independent global source of employee benefits, compensation and financial literacy education and information.
International Society of Certified Employee Benefit Specialists
The International Society of Certified Employee Benefit Specialists (ISCEBS) is a non-profit educational association whose members have earned the Certified Employee Benefit Specialist (CEBS) designation, which is cosponsored by the International Foundation of Employee Benefit Plans and the Wharton School of the University of Pennsylvania. For more information on the Society or CEBS, please visit the ISCEBS Web site at www.iscebs.org.
As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.