Of the most prevalent changes employers made to their workplace retirement savings plans last year, increasing the matching contribution was the most common, according to a new study from Fidelity Investments.
In 2023, more than 1 in 3 employers (37%) boosted their matching contribution, in line with the 38% that did so in 2022.
Another 30% reported that they began offering a matching contribution, up from 28% the year before.
Other popular design changes revolved around auto-enrollment and auto-escalation. More than 1 in 3 (34%) increased the auto-enrollment deferral rate, while others (28%) implemented auto-escalation, up from 21% in 2022.
The study found that plan sponsors that used an advisor were more likely to adopt plan features that are associated with greater retirement readiness among participants.
For example, the study found that 82% of advised plans feature automatic enrollment compared with 68% of non-advised plans. Plans with advisers were also more likely to increase their matching contribution, with 31% reporting that they plan to do so. Among plans without advisors, only 25% were looking to increase their matching contribution.
In addition, plans with advisers were more likely to establish a defined retirement income replacement goal.
The study is based on an online survey of 1,174 plan sponsors that had at least 25 participants and at least $3 million in plan assets. The plan sponsors used a variety of record keepers. The survey was conducted in January.
