With many workers electing workplace benefits during open enrollment this month, a new survey finds that less than half will review or increase their retirement plan contributions, suggesting a missed opportunity to improve their retirement readiness.
In fact, findings from the Corebridge Financial and Morning Consult survey show that the vast majority of workers (87%) believe it’s a good idea to review their retirement savings plan while selecting workplace benefits during their company’s open-enrollment period. Yet, just 44% of respondents say they will review how much they contribute to their retirement plan.
Additionally, only 34% expect to review their employer’s contribution and only 31% plan to evaluate whether they are on track to meet their retirement goals. Among those who do not intend to review or make any changes to their employer-sponsored retirement plan during the open-enrollment period, the most cited reason is that they haven’t thought about it (27%).
Meanwhile, a similar survey from Voya Financial shows that nearly 7 in 10 (67%) employed Americans who are eligible for benefits will spend 30 minutes or less reviewing their workplace benefits during their employer’s open-enrollment period—and nearly half (42%) will spend 20 minutes or less reviewing such information. In contrast, consider that the average American spends more than two hours a day on social media platforms.
“While social media has many advantages for staying connected to family, friends and other interests, it’s important to remember that one’s workplace benefits also deserve their fair share of attention,” said Nate Black, Vice President of Health Product Development at Voya Financial. “And with just a ‘once-a-year’ opportunity to evaluate what you’re spending and using on benefits, it’s even more important to give open enrollment the time and attention it deserves.
Education and Engagement
While the Corebridge survey itself does not address the pros and cons of auto-escalation, the firm does suggest that the findings represent an opportunity for employers and financial professionals to educate and engage employees and clients on workplace retirement benefits.
It also is an opportunity for individuals to ensure they are taking advantage of the retirement resources available to them through their employer. This is particularly relevant, since just 4 in 10 (41%) respondents say that their retirement outlook has improved since this time last year.
Accordingly, Corebridge suggests that participants:
- Consider increasing their retirement plan contribution, even by a small amount; note that less than half (45%) of those surveyed said they intend to increase their retirement plan contribution by 1% or more.
- Ensure they’re enrolled in their employer-sponsored retirement plan, if eligible; in this case, 32% of respondents said they will be enrolling in their company’s DC plan, with 35% already enrolled.
- Meet with a financial professional; nearly 8 out of 10 (78%) believe it’s a good idea to meet with a financial professional when selecting workplace benefits, a sentiment that increases among younger generations.
The Corebridge survey also found that women (33%) were significantly less likely to say their retirement outlook has improved heading into this open-enrollment season compared to men (48%). Generationally, Millennials were most likely to say their outlook has improved with more than half (51%) feeling good about retirement.
“The benefits available through the workplace can play a major role in retirement planning—from helping you accumulate and protect retirement savings to ensuring your loved ones are taken care of later in life,” said Terri Fiedler, President of Retirement Services at Corebridge Financial. “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.”
By the same token, Voya’s Black suggests that employers take the time to ensure that their employees understand and take advantage of their benefit offerings. “As we approach the open enrollment period this fall, this data serves as an important reminder and opportunity for employers to provide the education their workforce needs to not only become well-educated about their benefits, but also to help them make more informed decisions.”
The Corebridge poll was conducted with Morning Consult between Oct. 18–23, 2023, among a national sample of 2,312 working adults. Voya Financial’s survey was also conducted with Morning Consult, but from Sept. 22-23, 2023, among 710 adults who work full-time or part-time and are benefits eligible.
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