Retirement plan design: 4 key strategies to consider

Retirement planning is a top priority for many Americans, yet significant barriers remain, leading to U.S. adults consistently ranking saving for retirement as their number one worry. Hindered by complex decisions about how much to contribute or which investments to choose, most American workers need to catch up to their savings potential. Indeed, nearly 1 in 4 workers with access to an employer-sponsored retirement savings plan (23%) did not participate in 2023 — and participation rates are even worse for those with lower wages.

Employers have a unique opportunity — and responsibility — to address these challenges. Offering a quality retirement plan is a critical employee benefit that can help employers to both recruit and retain workers, as more than three-quarters (76%) report that having a job with an employer-sponsored retirement plan is either “extremely” or “very” important. For many workers, an employer-sponsored retirement plan is the primary, and sometimes only, vehicle for building long-term financial security.