9 ways to help 401(k) participants save more

Studies show that while people might be saving more for retirement, they're not saving enough—and many aren't saving at all. Reasons for this behavior vary with demographics. But the fact remains that more people seem to need more help when preparing for retirement. Enter the 2018 Defined Contribution Plan Participant Survey from JP Morgan, which finds that, among other things, employees take to heart plan recommendations that are meant only as general guidance, not instructions. The survey, which queried nearly 1,300 participants, found disconnects and miscommunications between employee participants and employer plan sponsors. Some problems arise out of ignorance on the part of participants; some out of a lack of confidence and some on simple misunderstandings or a misplaced streak of independence. Some arise out of fear. While people really want to save more—30 percent say they're committed to saving as much as they can—a grim 12 percent say they'll wait till they retire and then figure out how to live on what they've managed to save. As the report points out, neither of those is actually a plan for retirement. While participants do seem optimistic on their chances for a comfortable retirement, nearly half feel they won't be able to retire when they want. The JP Morgan report looked at several areas where participants fail to achieve their goals and why, and made recommendations to employers on how to try to fix the situation. Look at the slides above for 9 of their suggestions.