While there are differences in retirement saving behaviorsbetween employees who work for for-profit companies and those whowork for not-for-profit institutions, they have onething in common: Nearly half save only enough for retirement to getthe full amount of employer matching funds.

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According to new research from the LIMRA Secure RetirementInstitute, how the employer match is structured can drivedefined contribution planparticipants’ behavior.

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If an employer matches 100 percent of the first three percent anemployee puts away toward retirement, the employee typically willsave a maximum of six percent.

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If, however, the employer’s contribution is structured so thatonly 50 percent of the first 6 percent is matched, employees willtypically save 9 percent—thus improving their chances of havingenough money in retirement.

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Another trait that both for-profit and not-for-profit employeeshave in common is that just 40 percent consider themselves“savers”; in addition, 20 percent of those who have access to a DCplan at work don’t contribute—although their reasons do differ abit depending on whether the employer is a for-profit company or anot-for-profit.

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For-profit workers who don’t contribute to workplace DC planswere more likely to say they can’ afford to or that they havecompeting saving priorities.

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Not-for-profit workers, on the other hand, were less likely tosay that (67 percent vs. 53 percent).

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Pushing employees to save more through the structuring ofemployer contributions could be an important way to improveworkers’ chances of a secure retirement—particularly since theresearch indicates that almost half of Americans believe they’renot saving enough for retirement, and approximately 40 percent ofworking households have managed to save less than $25,000 to retireon.

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Read: Retirement crisis? What retirementcrisis?

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“The study demonstrates the powerful incentive a company matchcan have on employee behavior,” Michael Ericson, LIMRA SecureRetirement Institute analyst, said in a statement.

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Ericson added, “Plan providers can help employers increase theiremployee’s savings behavior by recommending a stretch matchstrategy, which would require an employee to save a higherpercentage to attain the full company match.”

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