Retirement plans figure heavily as a tool to help employees achieve financial well-being, says a recent report.
In its 2022 Benefits Strategy & Benchmarking Survey, insurance broker and consulting firm Gallagher studied 225 employers in the K-12 education sector. They found growing interest in financial well-being and that retirement plans are prevalent.
Thirty-seven percent of the employers surveyed said that financial well-being has become more important over the last two years, 7 percentage points higher than in 2021. The top financial well-being program was financial literacy and other educational opportunities; 38% of employers said they offer such a benefit.
A very strong majority of the employers studied — 91% — have a retirement program. And those that offer a retirement program most commonly offer:
- 403(b) plans: 73%
- defined benefit plans: 42%; and
- 457 plans: 26%.
To better promote retirement saving, a strong plurality — 43% — have established an auto-enrollment option. And 17% offer auto-escalation.
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