2013 Trends & Experience in Defined Contribution Plans
The employer-provided retirement system plays a critical role in helping participants meet their financial needs. Our research shows that for three quarters of employers, a defined contribution plan is the primary source of retirement income for their employees.
This report, which highlights defined contribution plan design from over 400 plan sponsors employing more than 10 million workers, in plans that total nearly $500 billion in retirement assets—finds that sponsors are strengthening their plans in the following ways:
- Refocusing the Dollars on Match: Dollar for dollar on 6% match is now the most common
- Relaxing Eligibility Requirements: Trend to have more immediate plan eligibility
- Broadening Roth Availability: Half of all plans now allow Roth deferrals
- Improving Investment Choices: Ninety percent use institutional funds
- Offering Savings Education: Three out of four plans have some form of advice