An annual survey on matching contributions trends suggests the economy is slowly recovering. The 7th annual Retirement Plan Survey found that 30 percent of employers are planning to reinstate previously eliminated or reduced matching contributions in 2011.
On the other hand, the survey, conducted by Grant Thornton LLP, Drinker Biddle & Reath LLP and Plan Sponsor Advisors LLC, found that 42 percent of respondents do not have plans to reinstate their match this year.
Despite the economic downturn, a majority (83 percent) of plan sponsors reported that either very few or none of their employees have come forward with concerns about their retirement readiness.
“Considering the issues facing participants, including reduced employer contributions, decreased plan balances, economic uncertainty and regulatory/administrative updates such as Roth conversions, participants may not be aware that they need to be concerned,” said Jennifer Flodin, Chief Operation Officer of Planned Sponsor Advisors LLC.
Another recent survey, conducted by Aon Hewitt, also suggests that many employees are not properly prepared for retirement. The survey found that many employers are not confident employees are financially prepared for retirement. As a result, some organizations are making plan design changes and adding features to boost savings rates and promote responsible investing for 2011.
The findings are similar to a recent ING survey, which found that only 53 percent of Americans , despite the fact that most (97 %) fully understand that the earlier they start saving for retirement, the better off they will be.
To download a copy of the Retirement Plan Survey 2011, go to www.GrantThornton.com/retirementsurvey.