How Employers Are Trying to Boost Your Retirement

Better Investing

What's Hot


5 Reasons to Shop for a Home in DecemberFamily

Shoppers Boycott Businesses Selling Trump-Branded ProductsBusiness

Giving Thanks: Why Foreigners Find America AmazingAround The House

Why Washing Your Turkey Can Make You IllFamily

50 Best Gifts Under $25 for Everyone on Your ListFamily

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

What the Richest 1 Percent Earns in Every StateFamily

10 Ways to Retire Earlier Than Friends on the Same SalaryGrow

The 10 Best Ways to Blow Your MoneyCredit & Debt

7 Foods That Can Lengthen Your LifeFamily

The 50 Hottest Toys of the Past 50 YearsFamily

New Email Phishing Scam Targets Amazon ShoppersMore

7 Government Freebies You Can Get TodayFamily

Grim news about how little money Americans save for retirement makes headlines regularly. But one recent trend in employer-sponsored 401(k) plans could help change that.

Grim news of how little money Americans have saved for retirement makes headlines regularly. But one recent trend in employer-sponsored 401(k) plans could help change that.

More employers are matching workers’ 401(k) retirement plan contributions, according to a survey released Tuesday by Aon Hewitt, a consulting firm known for its index that tracks 401(k) activities.

The survey shows that 42 percent of companies now match at least a percentage of employee contributions dollar-for-dollar. That’s up from 31 percent in 2013. It’s also an improvement from before 2013, when matches of $0.50 per $1 were the most common type of employer match.

Rob Austin, director of retirement research at Aon Hewitt, states in a news release:

“With more workers falling short of their retirement savings needs, employers are being more aggressive about making plan design changes that will help workers close the savings gap. While these tweaks to the plan may seem small, they can have a profound impact on workers’ ultimate retirement wealth.”

The survey of more than 360 employers, representing more than 10 million workers, also reveals good news about employers’ automatic 401(k) plan enrollment of their workers, with most employers now doing it for new hires.

Additionally, 16 percent of employers now automatically enroll all eligible workers, a practice known as “back-sweeping.” That’s twice the percentage of employers that were back-sweeping in 2013.

To learn more about managing a 401k, check out:

Does your employer match your 401(k) contributions? Let us know below or on Facebook.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 10 Ways to Retire Earlier Than Friends on the Same Salary

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,767 more deals!