Workplace retirement plans saw 12.9% average savings rate in 2019

Plan participants contributed an average of 7.6% percent of their pay to workplace retirement plans in 2019, according to the results of a survey by the Plan Sponsor Council of America. Plan sponsors contributed an average of 5.3% of employees’ pay, which brought the total average savings rate to 12.9%.

The annual survey, the group’s 63rd, found that more than 90% of eligible employees had an account balance in 2019 and 87.3% made contributions.

The survey also found that Roth contributions are now permitted in three-fourths of plans, up from 69.1% in 2018, and that 80% of plans offered a target-date fund, up from 68.6% in 2018.

In addition, 40% of plans now offer a professionally managed investment alternative to participants, up from 36.3% in 2018, and nearly 60% now offer plan access via mobile technology, up from 47.5% in 2018.

Fewer than 10% of plans offer annuities and just 3% include socially responsible investing options.

[More: Private equity in 401(k)s? Not anytime soon]

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