The Retirement Readiness Challenge: 5 Ways Employers Can Improve Their 401(k)s

401(k) and similar plans play a vital role in our retirement system by helping workers save and invest for retirement. As a savings vehicle, they have survived the Great Recession and, in many regards, have emerged even stronger. Until every American worker is saving enough to achieve a financially secure retirement, there will be opportunities for further innovation and refinements to 401(k)s and our retirement system.

The Retirement Readiness Challenge: 5 Ways Employers Can Improve Their 401(k)s outlines the following ways in which employers with their retirement plan advisors and providers, along with workers, can improve their retirement benefit offerings:

1. Adopt automatic plan features to increase savings rates
2. Incorporate professionally managed services and asset allocation suites
3. Add the Roth 401(k) option to facilitate after-tax contributions
4. Extend eligibility to part-time workers to help expand retirement plan coverage
5. Address any disconnects between employers and workers regarding benefits and preparations

The research report is based on findings from the 15th Annual Transamerica Retirement Survey which includes surveys of more than 750 employers and 4,100 workers conducted in 2014.