Fifty-four percent of employers surveyed by Hewitt Associates are confident about employees’ ability to retire with “sufficient retirement assets,” down from 66% in a similar survey a year earlier, confirmed Hewitt spokeswoman Catherine Brandt.
Also, 80% of the 30 companies Hewitt surveyed that have suspended or reduced corporate matches to 401(k) plans expect to reinstate them this year.
“While there has been marked growth in the 401(k) balances since the (stock) market recovery began, we still see too many workers not saving and investing in a way that will help them achieve their retirement goals,” Pamela Hess, Hewitt’s director of retirement research, said in the news release on the survey.
Restoring corporate matches and offering “features and tools that push workers to save more” are examples of how companies are encouraging better retirement planning, Ms. Hess added. Examples include automatic rebalancing for employee portfolios and automatic contribution escalation, which enables employees to raise their contribution rates over time.
Hewitt found that 51% of the respondents provide online investment guidance and that 28% offer managed accounts, which permit workers to delegate management of their portfolios to outside professionals. No comparison numbers from 2009 were given.
Also, 59% of employers provide automatic enrollment, up from 51% last year, and 59% offered contribution escalation, up from 53%.
The online survey of 162 human resource executives at midsize to large companies was conducted in November and December.