As 401(k) balances rebounded in 2010, the executives running defined contribution plans named retirement readiness one of their top priorities, according to the 10th Annual 401(k) Benchmarking Survey conducted by Deloitte and the International Society of Certified Employee Benefit Specialists.
Plan sponsors are also looking for aid from retirement plan service providers in helping their employees prepare for retirement. Only 15% of plan sponsors said they believe their employees will be prepared for retirement at the rate at which they are saving. The survey's results were released Tuesday.
While average balances rose, investors remain cautious. Thirty-nine percent of plan sponsors said the average account balance exceeded $75,000, up from 25% in 2009. However, 53% said employees are taking a wait-and-see approach to the economy and investing. Employers are embracing matches once again. In 2010, 66% of the plan sponsors said they offered employer matching contributions, up from 59% in 2009.
