Resource Library

Are we truly maximizing the power of the employer match? For every $1 an employer matches, the average participant contributes $2, suggesting room to increase match rates. While a seemingly modest part of benefit budgets, employer matching is a powerful incentive for retirement savings, recruitment, and retention. We anticipate employers will contribute over $275.4 billion in matching funds in 2025, demonstrating a strong commitment to employee financial security. Yet, our new research reveals critical areas for improvement to reduce the significant disparities in match distribution and investigate the underutilization among younger workers.

The power of individual savings rates in workplace retirement plans is undeniable. Auto-enrollment and auto-escalation have reshaped how Americans save, even as financial pressures continue to mount for many. We project participants will contribute over $466.7 billion to their workplace retirement accounts by the close of 2025, a clear sign that plan features and regulations are making an impact. Yet, a persistent gap between average and median contributions signals ongoing challenges for typical savers dealing with debt and other priorities. How can we bridge this divide?

Consolidating multiple accounts could boost participant balances by 36% within ten years. Meanwhile, innovations in larger plans, like the proliferation of CITs are reducing costs for participants. The data shows we're not just managing retirement plans – we're stewarding the financial future of American workers. Now, it’s about making every current and potential dollar count. What's driving total plan asset growth in the defined contribution system?

By the end of this year, over $100 billion will be cashed out, draining individual retirement security and the broader defined contribution system. While the median cash-out is under $2,000, the aggregate impact is immense.

Over $702 billion in rollovers is estimated to leave the defined contribution system by the end of this year, primarily flowing into IRAs where assets can sit, either uninvested or underperforming for participants.

Job changes are a fact of modern careers, but what’s the direct impact on retirement savings? With workers changing jobs over 12 times and spending more years in the workforce, consolidating workplace assets essential for retirement. While we project nearly $84.4 billion will be rolled into active defined contribution plans by year-end 2025, the fact emains: only about 1 in 10 participants who start the rollover process actually complete it. This systemic friction costs us all.

By the end of 2025, our Defined Contribution Data Dashboard shows over 144,244,194 participants will contribute into their workplace retirement savings plans. This is incredibly positive given the vital role workplace retirement savings represent for household wealth. Over the past 15 years, private sector worker participation has surged by almost 40%, driven by expanded access and innovative plan design features, particularly auto-enrollment. What’s the opportunity ahead to unlock further participation?

Speakers covered the essentials of Collective Investment Trusts, including how they work, how they differ from mutual funds, and why they matter for DC plan lineups.

In this policy-focused roundtable, plan sponsors discussed ongoing policy debates in Washington and recent ERISA developments. Recent legal cases surrounding forfeitures and prudent processes were reviewed.