Investment in 403(b) plans continues to rise as both plan sponsors and participants upped their dedication to the retirement savings plans in 2012.
The fifth annual 403(b) plan survey from the Plan Sponsor Council of America found that the majority of 403(b) organizations contributed to their plans in 2012, with the average contribution nearly 10 percent higher than 2011. It also identified opportunities in the 403(b) space that financial advisors and third-party administrators could benefit from.
More 403(b) plans are allowing those 50 and older to make catch-up contributions and 27.7 percent are now matching those contributions. The survey found that 17 percent of participants made the extra contributions in 2012 compared to 13.4 percent in 2011.
Education became a major focus in 2012, with 70.7 percent of plan sponsors making better use of email, nearly 25 percent using webinars and 54.2 percent holding one-on-one meetings.