PLANSPONSOR - October 2017 - 10
Plan Analysis
Highlights of BrightScope's proprietary research
Employer Generosity Grows
E
mployer dollars as a percentage of
employee defined contribution (DC)
retirement plan savings trended
upward between 2009 and 2014, then
slightly dipped in 2015, according to data
from BrightScope-like PLANSPONSOR,
a Strategic Insight company.
In 2009, after the Great Recession,
employer matches totaled 64% of
employees' savings for that year; this
percentage reached 77% in 2014, though
ticking back to 73% in 2015. In other words,
despite the minor retreat, employers are
supplying a larger percentage of dollar
contributions to the DC marketplace than
ever before. Over time, this will likely
be a powerful multiplier for participant
outcomes and industry flows.
There are several explanations for the
increase in employer matches-the rise in
automatic enrollment and automatic escalation
as well as improved benefits packages
being a few. Whatever the cause, the
employer match and automatic deferral
rates are often the vehicles that drive-and
best advance-participants' savings rates.
As seen in the accompanying chart,
both participants' and employers' contributions
have grown, year over year. Also, it
is anticipated that plan sponsor utilization
of automatic features and higher deferral
rates will continue to influence overall
savings growth-particularly that for new
employees benefitting from these plan
design features.
Overall, qualified defined contribution
retirement plan assets have
continued to soar, to over $5 trillion, representing
more than 700,000 plans and
85 million participants. With net assets in
an ongoing climb, the market has reached
an escape velocity. Demography is working
10 PLANSPONSOR.com October 2017
2009
2010
2011
2012
2013
Employer vs. Participant Contributions
n Participant contributions n Employer contributions
$250b
$200b
$150b
$100b
$50b
$0b
2009
2010
2011
2012
Source: BrightScope, a Strategic Insight company
in favor of retirement cash flows, and
BrightScope expects that they, too, are on
pace for continued growth. These trends
look promising for the health of the retirement
planning market, plan sponsors and
their plan participants.
In conclusion, DC plans have experienced
net participation outflows over
the last four years, and, with a strong
equity market enabling the aging Baby
Boom generation to retire, it is a trend that
Brightscope expects to see continue in the
short term. However, the foundation is
in place for significant DC inflows in the
decades to come, and an improved system
by which Millennials will retire. -PS
2013
2014
2015
% of Participants' Annual Savings Contributed by Employer
64% 68% 66% 65% 66%
77% 73%
2014
2015
http://www.PLANSPONSOR.com
PLANSPONSOR - October 2017
Table of Contents for the Digital Edition of PLANSPONSOR - October 2017
Moving Money
403(b) / 457 Buyer's Guide
Best Practices for the IPS
The Middle Ground
Questions, Answered
Navigating RMDs
PLANSPONSOR - October 2017 - Cover1
PLANSPONSOR - October 2017 - Cover2
PLANSPONSOR - October 2017 - 1
PLANSPONSOR - October 2017 - 2
PLANSPONSOR - October 2017 - 3
PLANSPONSOR - October 2017 - 4
PLANSPONSOR - October 2017 - 5
PLANSPONSOR - October 2017 - 6
PLANSPONSOR - October 2017 - 7
PLANSPONSOR - October 2017 - 8
PLANSPONSOR - October 2017 - 9
PLANSPONSOR - October 2017 - 10
PLANSPONSOR - October 2017 - 11
PLANSPONSOR - October 2017 - 12
PLANSPONSOR - October 2017 - 13
PLANSPONSOR - October 2017 - 14
PLANSPONSOR - October 2017 - 15
PLANSPONSOR - October 2017 - 16
PLANSPONSOR - October 2017 - 17
PLANSPONSOR - October 2017 - 18
PLANSPONSOR - October 2017 - 19
PLANSPONSOR - October 2017 - 20
PLANSPONSOR - October 2017 - 21
PLANSPONSOR - October 2017 - Moving Money
PLANSPONSOR - October 2017 - 23
PLANSPONSOR - October 2017 - 24
PLANSPONSOR - October 2017 - 25
PLANSPONSOR - October 2017 - 26
PLANSPONSOR - October 2017 - 27
PLANSPONSOR - October 2017 - 28
PLANSPONSOR - October 2017 - 29
PLANSPONSOR - October 2017 - 403(b) / 457 Buyer's Guide
PLANSPONSOR - October 2017 - 31
PLANSPONSOR - October 2017 - 32
PLANSPONSOR - October 2017 - 33
PLANSPONSOR - October 2017 - 34
PLANSPONSOR - October 2017 - 35
PLANSPONSOR - October 2017 - 36
PLANSPONSOR - October 2017 - 37
PLANSPONSOR - October 2017 - Best Practices for the IPS
PLANSPONSOR - October 2017 - 39
PLANSPONSOR - October 2017 - The Middle Ground
PLANSPONSOR - October 2017 - 41
PLANSPONSOR - October 2017 - Questions, Answered
PLANSPONSOR - October 2017 - 43
PLANSPONSOR - October 2017 - Navigating RMDs
PLANSPONSOR - October 2017 - 45
PLANSPONSOR - October 2017 - 46
PLANSPONSOR - October 2017 - 47
PLANSPONSOR - October 2017 - 48
PLANSPONSOR - October 2017 - Cover3
PLANSPONSOR - October 2017 - Cover4
https://www.plansponsordigital.com/plansponsor/march_april_2024
https://www.plansponsordigital.com/plansponsor/january_february_2024
https://www.plansponsordigital.com/plansponsor/november_december_2023
https://www.plansponsordigital.com/plansponsor/september_october_2023
https://www.plansponsordigital.com/plansponsor/july_august_2023
https://www.plansponsordigital.com/plansponsor/may_june_2023
https://www.plansponsordigital.com/plansponsor/march_april_2023
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
https://www.nxtbookmedia.com