Articles | June 12, 2018

Are Your People Saving Enough for Retirement?

Most organizations monitor their overall defined contribution (DC) plan participation. This standard periodic review may paint a pleasant picture, such as, “Eighty-three percent of your employees participate in your DC plan. The average employee saves 6.2 percent of his or her salary. That’s up from 5.5 percent last year.”

That sounds encouraging. Yet aggregate statistics can mask problems that undermine an organization’s efforts to help employees prepare for their own retirement. A closer look into the data — especially employee savings patterns — can expose hidden problems that may even affect organizational productivity and success.

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