Workers are more informed and make retirement planning decisions when their employers provide them with education and tools, personalized one-on-one meetings, guidance and phone support for managing the 401(k) plans.
That’s a key finding of a new report, 401(k) Wellness Scorecard, from Bank of America Merrill Lynch. The report observes that employees “respond enthusiastically” and “take positive action” when presented with simplicity in plan design, and easy access to guidance and education offerings about their plans.
In 2014, more than 1.5 million participants contributed to their 401(k) accounts. That represents an increase of 18 percent compared to 2013. The report attributes the growth in part to millennials’ increasing focus on savings. Nearly two-thirds (64 percent) more employees in this generation started contributing to a 401(k) account in 2014 compared to 2013.
The survey adds that, in 2014, 78 percent of active 401(k) participants who made a change to their plan made a positive one, by either starting or increasing their contributions, the survey adds.