A new study has revealed that Americans wish for better retirement benefits contributions from their employer. They even prefer it over a salary increase. The study also revealed that Americans prefer an employer who offers retirement plans over an employer who does not offer one. Many of the respondents also expect their employers to play a role in making the employee participate in the retirement plans.
The Survey on Retirement Benefits Contributions
The survey that revealed that Americans want better retirement benefits contributions over a salary increase was conducted by Mathew Greenwald & Associates Inc which is a Washington-based market research firm. The survey was conducted on around 1500 people who were between 25 to 60 years of age.
A key finding of the survey was that about 80 percent of the respondents who have an employer retirement plan preferred that their employer offers a 100 percent match on the contributions, which is up to 3 percent instead of giving the employee a 3 percent salary increase.
About 75 percent of the respondents stated that they would still feel the same way if the contributions were raised to 6 percent.
In the survey, about two-thirds of the respondents said that they would prefer to work with an employer who offered a retirement plan rather than the one who did not. Their stand remained the same even when the company offering no retirement benefits plan offered a 5 percent more salary than the company which offered the plan.
The conclusion of the study was shared by Diane Gallagher who serves as the American Century Vice President via a press release. The conclusion says that the results of the survey demonstrate the fact that Americans really place a lot of value on their retirement benefits plans.
The survey has also highlighted that fact that most employees need the assistance of their employer to save and invest in the retirement plans. About 80 percent of the employees admitted that they want at least a slight nudge from the employers so that they can save more and invest better for retirement. About 70 percent want their employer to do automatic enrollment at 6 percent. About 70 percent also expressed some interest in a regular and automatic increase in their retirement benefits contributions.