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Plan Sponsors Ask: March 2018


Mar. 5, 2018:


Q: We’re noticing that some of our near-retirement employees are not retiring when we thought they would. We have younger workers waiting in the wings to move up, but we don’t always have a spot for them. Is it just our company?​​


A: No. In fact, Bloomberg recently addressed this trend[1], stating that nearly 1-in-5 Americans over the age of 64 continued to work at least part-time during the second quarter of 2017. This is the highest percentage noted on the U.S. jobs report in at least 55 years. Some continue to work because they want to and are physically and mentally able. Others simply can’t afford to retire. As an employer, the actions you take today may help younger employees avoid staying in the workforce only because they need the money. Stay on top of trends in 401(k) plan design and communication, and make sure your plan advisor does, too. For example, auto enrollment and auto escalation can encourage more saving. Using a stretch matching contribution strategy can also encourage a higher contribution rate. And a quality default investment, like a target date fund[2], can help too.



[1] Working Past 70: Americans Can’t Seem to Retire, Ben Steverman, July 10, 2017


[2] The principal value of these funds is not guaranteed at any time, including at the target date.




Provided by Doug Fletcher - Prepared by Kmotion, Inc. Copyright 2018.

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*Source: PWC Employee Financial Wellness Survey, 2018. 

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