KEY TAKEAWAY

Only one out of three participants are satisfied with plan support for monitoring and changing their savings rates, and 42% would be interested in getting help determining how much to contribute to their plan.

Sponsors can help: They can provide the direction participants are asking for by automating savings so participants have to "opt out" instead of "opting in."

THE GOOD NEWS: PLAN SPONSORS ARE TAKING ACTION

THE GOOD NEWS: PLAN SPONSORS ARE TAKING ACTION

Two out of three sponsors recognize that their participants don’t want to have to think a lot about retirement savings. The same portion agrees that participants would value more company help. Automatically escalating contributions and catch-up contributions starting at age 50 could provide a significant boost to Gen Xers, in particular, whose oldest members are hitting that milestone birthday.

DO EMPLOYEES REALLY KNOW HOW TO INVEST?

DO EMPLOYEES REALLY KNOW HOW TO INVEST

Sponsors think participants understand how to invest appropriately for age and life stage. But almost half of plan participants say they need guidance — meaning they could be receptive to target date funds that make those adjustments automatically.

LEVEL THE PLAYING FIELD WITH REENROLLMENT

LEVEL THE PLAYING FIELD WITH REENROLLMENT

Plan sponsors and participants alike recognize how tough it is to maintain an age appropriate investment mix.
Reenrollment — a tool to help reach employees who never signed up for a plan or to realign investments for longtime participants — is gaining traction.

sponsorqoute

We automatically enroll people, and every year your contribution goes up 1% a year. For younger people, it’s very valuable, because compounding over time is how you get to retirement.

Source for all data: BlackRock DC Pulse Survey, September 2015

The conclusions are intended to provide an indication of the current attitudes of a sample of U.S. plan sponsors and participants about retirement saving and investing and should not be relied on for any other purpose.

Investing involves risk, including possible loss of principal. Asset allocation and diversification may not protect against market risk, loss of principal or volatility of returns.

©2017 BLACKROCK, Inc. All Rights Reserved. BLACKROCK is a registered trademark of BlackRock, Inc. All other trademarks are those of their respective owners.

FOR INSTITUTIONAL OR PROFESSIONAL USE ONLY.

Prepared by BlackRock Investments, LLC,member FINRA.

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