Plan Sponsor

Markets have been flirting with record highs on a regular basis, but not all employees are riding the wave toward retirement readiness. According to Vanguard’s How America Saves 2025, participation and/or balances still lag for low-income workers, young employees, women, and those with short tenure. These segments face unique hurdles that statistical averages may conceal. Forward-thinking plan sponsors can respond with non-fiduciary plan design and education strategies that go beyond the obvious to address real-world financial challenges.

A 2023 Vanguard study found that a quarter of participants deferred less than 4% of their income — generally below the threshold to maximize an employer match. While financial constraints play a role for some, psychological factors can also contribute. Understanding these cognitive biases can help explain why workers forfeit free money — and highlight strategies to help.

Employees can easily latch onto media-hyped, generalized one-size-fits-all retirement savings numbers without a clear understanding of whether those figures align with their personal financial circumstances. So what is retirement savings planning not?

According to a December 2023 survey from Schroder’s, nearly half of non-retired Gen Xers, those born between 1965 and 1980, have not done any retirement planning whatsoever. So how can employers help their "Sandwich Generation" workers consider planning for retirement?

Retirement planning often directs attention toward mid-career 401(k) participants and those nearing retirement, but what about the youngest members of the workforce — the 18- to 20-year-olds, or those even younger? How can proposed Legislation aim to help young workers put time on their side in retirement planning?

According to recent data from the National Council on Aging and the Women's Institute for a Secure Retirement, nearly half of women ages 25 and older lack access to a tax-advantaged, employer-sponsored retirement plan.