2 features proven to boost 401(k) participation
One of the keys to increasing participation in your company’s retirement plan is making things easier for employees. These plan features do just that.
So if your 401(k) provider doesn’t offer these things, you’re probably not getting the most bang for your buck.
1. The ability to change contribution rates online. People crave convenience. If workers have to go through the hassle of filling out a form every time they want to change their contribution rate, they’re less likely to do anything.
Your 401(k) provider’s website should be equipped with a tool that allows employees to increase or decrease their contribution rates with just a few clicks of the mouse.
2. A take-home pay calculator. Employees want to know how much increasing their contributions will affect their take-home pay — down to the last penny.
By entering gross annual salary, pay period, contribution percentage rate, etc., these calculators give employees a clear picture of whether they can really afford to bump up their 401(k) contribution rate. An example of this tool can be found here.
- Share on
Free Training & Resources
White Papers
Provided by UJET
Further Reading
What should you do if you mistakenly pay out too much for one of your employer-provided benefits, such as your retirement plan? Plan spo...
EBSA FY 2025 Enforcement Snapshot $1.4B recovered for workers and plans 878 civil investigations closed 253 criminal investigatio...
Employer health insurance plan costs are set to spike for next year. All the experts are in agreement on that point. The only question is j...
Although Congress isn’t famous for cooperation, there was enough bipartisan support for the Secure 2.0 Act of 2022 (pages 817-946 of ...
Americans use more healthcare services than any other people. So we pay more as a result — and the cost is going up every year. 2025 ...
Financial wellness programs often sound expensive or complex, but the truth is that one simple step — helping employees better unders...
