PLANSPONSOR - December 2022-February 2023 - 7

PARTICIPANT ANALYSIS
'No, Thanks,' to the DC Plan
F
or many workers, a defined contribution
plan with an employer match
or a discretionary contribution could
be the difference between accepting one
job vs. another. For others, deferring their
earnings to a retirement plan is something
they choose not to do, according to the
2022 PLANSPONSOR Participant Survey.
According to its findings, 115 of 774 respondents
were eligible to participate in a workplace
DC plan but had decided to say no.
The most common reason these
employees gave was they need to better
understand
the
benefits
of
participating
(18.3%). The next reason was that
they need their income for day-to-day
expenses (15.7%).
It may be expected that it is just the
younger employees who are living day to
day, those who are apt to be earning less-
and to know less about DC plans-or who
have student debt. Yet, while 50.5% of
the nonparticipating eligible employees
surveyed were ages 18 through 39, 44.3%
were 40 through 59-a similar amount.
The nonparticipating workers were
also across a range of tenures, although
those with their employer longer were
more apt to be participants. The group that
had a tenure of one through three years
had the highest rate of employee-plan
abstainers, at 36.5%. As tenures increased,
more employees were enrolled in their
workplace plan, with 20.9% abstaining at
four through six years on the job and 13%
abstaining after seven through 10 years.
The data seem to show that all
employees may need some education
about the value of participating in the
plan and/or instruction about budgeting
in order to be able to participate.
Providing education paired with
actions may benefit the employer, too, " as
financial wellness results in increased
focus, more productivity and better
morale, " says Kevin Crain, Bank of
America's head of retirement research
and insights. -Judy Faust Hartnett
Employees Who Are Eligible But Do Not Participate
In Employer's 401(k), 403(b) or 457 Plan
18 - 22 years old
20.9%
23 - 29 years old
30 - 39 years old
40 - 49 years old
50 - 59 years old
60 - 69 years old
>70 years old
22.6%
7.0%
24.3%
20.0%
3.5%
-
1.7%
Tenure the Employee Has Worked for the Current Employer
<1 year
18.3%
1 - 3 years
4 - 6 years
7 - 10 years
>10 years
36.5%
20.9%
13.0%
11.3%
Factor That Most Strongly Influenced Participant's Decision
To Not Participate
I need to better understand the benefits of participating
I need my income for day-to-day expenses
I'm saving for something else
I'm paying down debt and can't afford to save
I need personal investment guidance before I enroll
I've saved enough and I'm ready for retirement
I invest where I can do better than the DC plan
I'm uncomfortable investing in the stock market
I fear I won't have access to my account in emergencies
Other reason
Source: 2022 PLANSPONSOR Participant Survey
18.3%
15.7%
14.8%
13.0%
10.4%
9.6%
5.2%
5.2%
4.3%
3.5%

PLANSPONSOR - December 2022-February 2023

Table of Contents for the Digital Edition of PLANSPONSOR - December 2022-February 2023

INSIGHTS
RULES & REGULATIONS
PARTICIPANT ANALYSIS
UPFRONT
Risk Protection
Benchmarking Beyond Fees
Exploring ESG Investing
In Case of Emergency
Employee-Owned
FIDUCIARY FORUM
INSIDE ANGLE
PLAN PROFILE
PLANSPONSOR - December 2022-February 2023 - Cover1
PLANSPONSOR - December 2022-February 2023 - Cover2
PLANSPONSOR - December 2022-February 2023 - 1
PLANSPONSOR - December 2022-February 2023 - INSIGHTS
PLANSPONSOR - December 2022-February 2023 - 3
PLANSPONSOR - December 2022-February 2023 - RULES & REGULATIONS
PLANSPONSOR - December 2022-February 2023 - 5
PLANSPONSOR - December 2022-February 2023 - 6
PLANSPONSOR - December 2022-February 2023 - PARTICIPANT ANALYSIS
PLANSPONSOR - December 2022-February 2023 - UPFRONT
PLANSPONSOR - December 2022-February 2023 - 9
PLANSPONSOR - December 2022-February 2023 - 10
PLANSPONSOR - December 2022-February 2023 - 11
PLANSPONSOR - December 2022-February 2023 - 12
PLANSPONSOR - December 2022-February 2023 - 13
PLANSPONSOR - December 2022-February 2023 - Risk Protection
PLANSPONSOR - December 2022-February 2023 - 15
PLANSPONSOR - December 2022-February 2023 - 16
PLANSPONSOR - December 2022-February 2023 - 17
PLANSPONSOR - December 2022-February 2023 - Benchmarking Beyond Fees
PLANSPONSOR - December 2022-February 2023 - 19
PLANSPONSOR - December 2022-February 2023 - 20
PLANSPONSOR - December 2022-February 2023 - 21
PLANSPONSOR - December 2022-February 2023 - 22
PLANSPONSOR - December 2022-February 2023 - 23
PLANSPONSOR - December 2022-February 2023 - 24
PLANSPONSOR - December 2022-February 2023 - 25
PLANSPONSOR - December 2022-February 2023 - 26
PLANSPONSOR - December 2022-February 2023 - 27
PLANSPONSOR - December 2022-February 2023 - Exploring ESG Investing
PLANSPONSOR - December 2022-February 2023 - 29
PLANSPONSOR - December 2022-February 2023 - 30
PLANSPONSOR - December 2022-February 2023 - 31
PLANSPONSOR - December 2022-February 2023 - 32
PLANSPONSOR - December 2022-February 2023 - 33
PLANSPONSOR - December 2022-February 2023 - In Case of Emergency
PLANSPONSOR - December 2022-February 2023 - 35
PLANSPONSOR - December 2022-February 2023 - Employee-Owned
PLANSPONSOR - December 2022-February 2023 - 37
PLANSPONSOR - December 2022-February 2023 - FIDUCIARY FORUM
PLANSPONSOR - December 2022-February 2023 - INSIDE ANGLE
PLANSPONSOR - December 2022-February 2023 - PLAN PROFILE
PLANSPONSOR - December 2022-February 2023 - Cover3
PLANSPONSOR - December 2022-February 2023 - Cover4
https://www.plansponsordigital.com/plansponsor/december_2022_february_2023
https://www.plansponsordigital.com/plansponsor/october_november_2022
https://www.plansponsordigital.com/plansponsor/august_september_2022
https://www.plansponsordigital.com/plansponsor/june_july_2022
https://www.plansponsordigital.com/plansponsor/excellenceawards_2022
https://www.plansponsordigital.com/plansponsor/april_may_2022
https://www.plansponsordigital.com/plansponsor/february_march_2022
https://www.plansponsordigital.com/plansponsor/december_2021_january_2022
https://www.plansponsordigital.com/plansponsor/october_november_2021
https://www.plansponsordigital.com/plansponsor/august_september_2021
https://www.plansponsordigital.com/plansponsor/june_july_2021
https://www.plansponsordigital.com/plansponsor/april-may_2021
https://www.plansponsordigital.com/plansponsor/february-march_2021
https://www.plansponsordigital.com/plansponsor/december-january_2021
https://www.plansponsordigital.com/plansponsor/october-november_2020
https://www.plansponsordigital.com/plansponsor/august-september_2020
https://www.plansponsordigital.com/plansponsor/june-july_2020
https://www.plansponsordigital.com/plansponsor/april-may_2020
https://www.plansponsordigital.com/plansponsor/february-march_2020
https://www.plansponsordigital.com/plansponsor/december-january_2020
https://www.plansponsordigital.com/plansponsor/october-november_2019
https://www.plansponsordigital.com/plansponsor/august-september_2019
https://www.plansponsordigital.com/plansponsor/june-july_2019
https://www.plansponsordigital.com/plansponsor/april-may_2019
https://www.plansponsordigital.com/plansponsor/february-march_2019
https://www.plansponsordigital.com/plansponsor/december_2018-january_2019
https://www.plansponsordigital.com/plansponsor/october-november_2018
https://www.plansponsordigital.com/plansponsor/august-september_2018
https://www.plansponsordigital.com/plansponsor/june-july_2018
https://www.plansponsordigital.com/plansponsor/april-may_2018
https://www.plansponsordigital.com/plansponsor/february-march_2018
https://www.plansponsordigital.com/plansponsor/december_2017-january_2018
https://www.plansponsordigital.com/plansponsor/november_december_2017
https://www.plansponsordigital.com/plansponsor/october_2017
https://www.plansponsordigital.com/plansponsor/september_2017
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