$400 billion+: Estimated size of 401(k) contributions by 2018

Contributions to employer-sponsored retirement plans are expected to increase in the coming years, according to Cerulli Associates. This is not just a blessing for participants, many of whom have been saving too little for too long. It also helps the industry, which faces an expected increase in withdrawals as baby boomers head into retirement. Cerulli suggests that to help increase contributions, advisors can consider combining automatic enrollment and escalation programs with adjustments to the matching formula, along with targeted, personalized participant communications.

Advisors can help by offering plan sponsors insights about the dynamics of coaxing participants to save more. Education isn’t just for plan participants.

Source: Cerulli Associates, “Cerulli Retirement Markets 2013: Data & Dynamic of Employer-Sponsored Plans”

Browse: DC Daily Stat

Previous

The Rise of the Roth 401(k)

May 12, 2014

Next

In the Long Run

May 14, 2014

This material is provided for educational purposes only and is not intended to constitute “investment advice” or an investment recommendation within the meaning of federal, state, or local law. You are solely responsible for evaluating and acting upon the education and information contained in this material. BlackRock will not be liable for any direct or incidental loss resulting from applying any of the information obtained from these materials or from any other source mentioned. BlackRock does not render any legal, tax or accounting advice and the education and information contained in this material should not be construed as such. Please consult with a qualified professional for these types of advice.