While employees may think their 401(k) plans
will get them through retirement, plan sponsors aren’t so sure.
A new Deloitte survey found 84 percent of executives responsible for 401(k) plans think most employees will not be financially prepared for retirement. In addition, most plan sponsors believe it is their responsibility to improve employees' financial planning for retirement.
Nearly two-thirds of plan sponsors said their responsibility includes urging employees to track towards a comfortable retirement. In order to encourage employees to improve their savings habits, 49 percent of sponsors are offering automatic increases
in contribution levels in their plans. However, two-thirds of plan sponsors said just 10 percent of employees take advantage of this feature.
In addition, 79 percent of plan sponsors said improving employee understanding of 401(k) fees