In the 40 years since their creation, 401(k) plans have become a go-to way for employers to demonstrate their commitment to their employees’ financial wellness both during and after their working lives. But in a competition to see who can offer the trendiest benefits, is this tried-and-true offering still as valuable to employees as plan sponsors hope it is?
We asked 845 Betterment for Business plan participants what they thought—and learned that the 401(k) is still earning its place in the human resources recruitment arsenal.
401(k)s are a valuable benefit for job seekers…
- 67% said that a good 401(k) was very important or important in their evaluation of a job offer
- 46% said offering a match played a role in the decision whether to take a job
…and once they’re enrolled, plan participants care very much about their plan and their retirement outcomes
- 75% signed up for a 401(k) because they are concerned about and focused on their retirement readiness
- 64% check their accounts at least once a pay period
- 85% strongly agree or agree that it’s important that their plans have transparent and low-cost fees
The full report details these themes and other takeaways for employers. Download and read The Staying Power of 401(k)s for the full story.