Defined Contribution

There is a disconnect between the idealistic notion of early retirement vs. the reality of prioritizing saving for it, and one clear area for improvement for many employers is offering financial education, according to a new survey.

Employers depend greatly on their advisors and consultants – called "gatekeepers," in a new retirement income white paper that says 83% of plan participants said their employers should offer in-plan retirement income options.

The compensation employees receive is more than the number on their paycheck – 401(k) matching contributions, student loan repayment, employee stock purchase or employee discounts can add up to $10,000.

Emergency savings accounts – and interest-free emergency loans – can have a palpable impact on employees' lives in the short-term, preventing them from racking up credit card debt or turning to predatory payday loans.

The Saver's Match program offers a 50% federal match on the first $2,000 of retirement savings for low-income workers, but the industry needs to educate employees how to take advantage of the program, says a new report.

Asset manager BlackRock has launched LifePath Paycheck, which gives employees access to guaranteed income through a target date fund, allowing DC plans to switch some of an enrollee's investments into an annuity at age 55.

The $2,500 Pension-Linked Emergency Savings Account option takes a small amount from paychecks (3%) and is easy to set up, said Commonwealth, which took a close look at new emergency savings options in SECURE 2.0.

With 3 out of 4 workers living paycheck to paycheck, 80% of them are likely to stay with their employer if they offered an emergency savings account, according to a new FinFit survey.