Survey Suggests Gaps in Plan Sponsor Goals, Roles

I recently read a great article written by PLANSPONSOR.com. Please see below.

A new survey reveals a potential disconnect between plan sponsors and plan participants.

Employers still view retirement plans mainly as a benefit rather than as the primary means for their employees to support themselves after retirement, according to a new survey by Wells Fargo Institutional Retirement and Trust. Fewer than half (45%) say the “primary” goal of offering a retirement plan to their employees is to “provide employees with the means to achieve a financially sound retirement,” according to the report, while slightly more (51%) say the primary reason they offer a retirement plan is to “provide competitive benefits to attract and retain employees.”

Disconnect “Ed”

Asked why they think employees participate in a company-sponsored 401(k) plan, only about a third (30%) of employers say it is because they think participants want to save enough to retire comfortably. The most common response, cited by 42% of employers surveyed, was that employees participate in order to take advantage of the company’s 401(k) match.

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To read the rest of the article, please go to the PlanSponsor.com link.

Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com

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