Workplace Open Enrollment Period is Missed Opportunity to Bolster Retirement Plans

By: Corebridge Financial via Business Wire

November 09, 2023 at 10:00 AM EST

As many workers elect workplace benefits during open enrollment this month, new Corebridge Financial-Morning Consult survey finds less than half will review or increase retirement plan contributions.

The overwhelming majority of workers (87%) believe it’s a good idea to review their retirement savings plan while selecting other workplace benefits during their company’s open enrollment period, but just 44% say they will review how much they contribute to their retirement plan, according to a new survey released by Corebridge Financial and Morning Consult. Additionally, only 34% expect to review their employer’s contribution and only 31% plan to evaluate whether they are on track to meet their retirement goals.

With just four out of 10 (41%) respondents saying that their retirement outlook has improved since this time last year, there is a clear opportunity for Americans to take action during open enrollment, which often takes place in November:

Consider increasing your retirement plan contribution, even by a small amount —less than half (45%) of those surveyed said they intend to increase their retirement plan contribution by 1% or more.
Ensure you’re enrolled in your employer-sponsored retirement plan, if eligible — 32% of respondents said they will be enrolling in their company’s defined contribution plan, with 35% already enrolled.
Meet with a financial professional —nearly eight out of 10 (78%) believe it’s a good idea to meet with a financial professional when selecting workplace benefits; a sentiment that increases among younger generations.

“The benefits available through the workplace can play a major role in retirement planning — from helping you accumulate and protect retirement savings to ensuring your loved ones are taken care of later in life,” said Terri Fiedler, President of Retirement Services at Corebridge Financial. “Your employer’s open enrollment period is an opportune time to review your retirement plan holistically, identify gaps and needs, ensure you’re maximizing your employer’s contribution matching programs and take actions that will help achieve the retirement you envision.”

The Corebridge survey found women (33%) were significantly less likely to say their retirement outlook has improved heading into this workplace enrollment season compared to men (48%). Generationally, millennials were most likely to say their outlook has improved with more than half (51%) feeling good about retirement.

Among those who do not intend to review or make any changes to their employer-sponsored retirement plan during the workplace open enrollment period, the most cited reason is that they haven’t thought about it (27%). This represents an opportunity for employers and financial professionals to consistently educate and engage employees and clients on workplace retirement benefits. It is also an opportunity for individuals to ensure they are taking advantage of the retirement resources available to them through their employer, which may include access to the planning services of a financial professional.

Methodology

This poll was conducted with Morning Consult between October 18 – 23, 2023 among a national sample of 2,312 working adults. Results from the total sample have a margin of error of +/-2 percentage points.

This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. For legal, accounting or tax advice consult the appropriate professional.

About Corebridge Financial

Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $360 billion in assets under management and administration as of September 30, 2023, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us on LinkedIn and YouTube.