Perhaps it’s time to take a philosophical assessment of your company’s retirement plan. Does it exist simply out of a sense of obligation, or because your competitors have one?
Or does your culture support it because of a belief that employees should have something to show for their labor after they have left the company?
If the latter is true, but you still have outdated eligibility policies for participation in the plan, then a reconsideration of those policies may be in order.
The author points to data that indicates that most employees switch jobs often, and that 4.6 years is an average tenure these days.
Plans that have waiting periods play into the worst retirement planning tendencies that people have. New employees lose interest. They get used to spending every penny and don’t want to divert it after three months to a plan promising security in one’s dotage.
McCracken cites stats that show American workers are more likely now than ever to roll over assets from one account to another when they change jobs.