Fewer Than Half of Workers Plan to Review Retirement Plan Contribution

This open enrollment benefits season finds fewer than half of employees with a better outlook for their retirement savings than last year, but that is not prompting them to reconsider contributions, according to a recent survey released by Corebridge Financial and Morning Consult. 

“As employers identify employee communication strategies about retirement plans during the open enrollment period, but also throughout the year, it’s important that employers are monitoring the plan’s overall health, including reviewing such measures as participation and contribution rates,” Corebridge’s Terri Fiedler, president of retirement services, said via email. “Through these efforts, employers can define and monitor plan goals, identify trends and make informed decisions on actions that can help improve plan engagement.” 

Only 41% of respondents reported an improved retirement outlook compared to last year, according to the survey released November 9. Meanwhile, 44% of workers said they would assess their contribution to their retirement plan, with even fewer (34%) planning to review their employer’s contribution and just 31% intending to evaluate their progress toward meeting their retirement goals. Those areas would all be a way for employees to address retirement security concerns and are actions, Fiedler recommended in a statement with the report.  

“Your employer’s open enrollment period is an opportune time to review your retirement plan holistically, identify gaps and needs, ensure you’re maximizing your employer’s contribution matching programs and take actions that will help achieve the retirement you envision,” Fiedler said. 

For those not planning to review or modify their employer-sponsored retirement plan during open enrollment, the most common reason cited was lack of consideration (27%), underscoring an opportunity for employers and financial professionals to engage employees on workplace retirement benefits, Corebridge reported.  

The survey results also highlighted gendered differences on retirement readiness, with women (33%) less likely than men (48%) to report an improved retirement outlook. Compared to other generations, Millennials in particular expressed optimism, with more than half (51%) feeling positive about retirement. 

According to Corebridge, there is a clear opportunity for both employees and employers to take action during open enrollment, which typically happens in November but varies by employer. Many employees, for example, can increase their retirement plan contributions: 45% of those surveyed plan to raise their contribution by 1% or more, according to the report.  

Corebridge also suggested workers should meet with a financial professional, a practice endorsed by 78% of participants and increasingly embraced by younger generations. 

“One of the most helpful ways employers can ensure employees are thinking about their retirement plans during the workplace open enrollment period is to engage them throughout the year,” said Fiedler via email. 

For employers, this can include sending targeted and personalized emails, as well as offering employees retirement education and planning resources that enable them to take actions– whether that’s utilizing digital planning tools, attending webinars and workshops, or meeting with financial professionals, she said.  

When enrollment season comes around, employees can be better prepared to evaluate not only where they are in their retirement journey, but how all of their benefits tie together. For example, if employees have disability coverage offered through their workplace, Fiedler said they should be considering how that can help them protect their retirement savings from unexpected events. 

“That said, when employers are developing their annual enrollment communications, we’d encourage them to include understandable, digestible information and reminders about retirement plans among all other benefits, such as details about enrolling in the plan, designating or reviewing a beneficiary or increasing their contribution,” suggested Fiedler.  

Conducted by Morning Consult between October 18 and 23, the survey involved a national sample of 2,312 working adults, with results from the total sample having a margin of error of two percentage points.