According to the recently released SHRM 2017 Employee Benefit report, driven by a more competitive employee market, seven times more organizations are considering increasing retirement benefits than decreasing them.
Over two-thirds of respondents have less than 500 employees with just 12% over 2500. Though five times as many were looking to increase benefits than decrease them (32% v. 6%), larger entities are twice as likely to reduce benefits (12%) than the average. Benefits comprise 30% of compensation for private companies, with retirement making up 4%.
Other highlights on retirement related benefits include:
- HSAs are offered by 55% of organization up 10% from 2016 and 36% of entities contribute to their employee’s accounts.
- Roth 401k grew 10% as well up to 55% of entities in 2017 and up from just 38% in 2013.
- Matches remain stable with 74% of respondents contributing.
- Fewer plans are allowing hardship withdrawals and loa
- Auto enrollment for new employees at 40% remained stable with re-enrollment at just 24%.
- Auto escalation is offered at 19% of companies down from 21% in 2013.
- Just 45% of plans offer a target date funds (TDFs)
- Half of the entities offer some type of advice to employees, up from 36% in 2013, led by online tools, one on one and group meetings
Reading surveys about the retirement market principally based on larger plans, the conclusion might be that auto plan feature and TDFs are prevalent but the SHRM report tells a much different story. It takes courage and senior management engagement to make the move to the Ideal Plan which more and more companies are doing to make benefits more compelling and help employees to prepare for retirement. Just more slowly for smaller organizations.
