Employers are refocusing employee retirement benefits, turning to more cost-saving strategies. A new survey by Hewitt Associates shows employers are looking to automatic rebalancing and target-date funds.
Of the 150 mid- to large-size employers surveyed, half currently offer automatic enrollment, up from 44 percent last year. However, of those who are offering it, only 25 percent say they’re somewhat or very likely to add it for new hires, and only 15 percent are likely to adopt it for existing employees in 2009. The reason falls on the cost of increased employer match. Hewitt says some employers may opt for simply eliminating the company match.