Proof that retirement help leads to higher balances
If your company offers employees investment help with their 401(k)s, you’ll want to use this info — to show them just how valuable that help can be.
Employees who sought investment help with their 401(k)s saw an average annual return that was 3% better than those workers who handled their accounts themselves.
That’s according to a recent study by Financial Engines and Aon Hewitt, which tracked more than 425,000 employee 401(k) plans over a five-year period (2006-10).
The study considered investment help as:
- putting an advisor in charge of managing an account,
- seeking financial advice online (through the provider’s website), or
- setting up target-date mutual funds in the account.
That 3% makes a huge difference. Example: Say two investors have $10,000 in their 401(k)s at age 45, and one investor opts to get investment help from 45 through 65. With the 3% advantage, he or she would have around $30,000 more in that account than the employee who opted to go it alone.
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
Further Reading
Layoffs, inflation, AI … these are just some of the factors making employees feel more stressed about their jobs and career future. S...
You have great well-being benefits. So why don’t employees use them to the max? Nearly 80% of employees have access to well-being ...
CFOs and benefits professionals can only do so much to influence employees to invest in a company 401(k) plan. So-called influencers are of...
What company wouldn’t opt for an employee benefit that helps new families out and pays for itself in various ways? A recent report on...
The new Mississippi Work and Save Program creates a voluntary, state-run retirement savings option for private-sector employees whose emplo...
Finance rarely sees jury duty or bereavement as risk. They’re payroll line items. Until courts link them to USERRA military leave –...
