Americans Who Plan Ahead for Workplace Open Enrollment are Twice as Likely to Have a Positive Outlook on Retirement
Corebridge Financial research reveals that while more than 80% of workers believe it's good to review retirement plans while selecting other workplace benefits, most do not
As the workplace benefit enrollment period approaches for many employees this November, a new survey from Corebridge Financial suggests workers who are already preparing for the process are more likely to feel positive about their retirement plans. With more than 75% of respondents saying they begin preparing for their benefits selection at least one week prior to open enrollment, those who plan ahead are twice as likely to have a positive outlook on their retirement plans going into the open enrollment period compared to those who do not.
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Preparation is key
The more positive retirement outlook of those who prepare ahead correlates with an increased intent to take retirement planning actions during open enrollment. More than 4 in 10 (42%) of those pre-open enrollment planners say they will review their current retirement plan contribution amount, compared to just 25% of those who do not plan ahead. Similarly, 48% of those who plan for open enrollment said they intend to increase their retirement plan contributions during this period, compared to just 19% of those who don't plan ahead.
Out of 41% of all respondents who said they will increase their retirement plan contribution during open enrollment, younger employees are the most eager to up their retirement savings during this period. Of note, Gen Z workers are most likely to increase their contribution, including 51% who plan to increase it by 2% or more.
Maximize your retirement potential during open enrollment
"The Corebridge research found that the benefits most commonly associated with open enrollment are health insurance, dental insurance and vision insurance," said Terri Fiedler, President of Retirement Services at Corebridge. "Just as employees are focused on the benefits that strengthen their physical health during open enrollment, it's also a great time to evaluate the workplace benefits that strengthen your financial health and take action, whether that's enrolling in your plan, assessing your retirement readiness or increasing the amount you contribute to your retirement plan."
The Corebridge survey revealed that more employees are enrolled in their company's workplace retirement plan heading into this year's open enrollment period, with 41% already contributing to a plan compared to 35% in 2023. For those already saving for retirement through a workplace plan, taking the opportunity to increase retirement plan contributions can have a lasting impact on savings power. Hypothetically, someone making $50,000 per year who contributes 6% of each paycheck would see their retirement savings grow to $375,470 over 30 years assuming an 8% rate of return on investments. But if that same person increased contributions to 8%, their savings would grow to $500,627 over 30 years, not accounting for employer contributions, salary increases or other factors that can help grow retirement accounts.1
Opportunities for ongoing support and education
While more than 8 in 10 (82%) respondents say their employer's open enrollment process is simple and easy, those who stated the process is confusing and complex identified one-on-one support as the most significant factor that would make enrolling in benefits easier (56%), followed by access to more interactive educational tools (40%). These types of support resources can also help employees understand all of the different benefit coverage options, which is the most dreaded aspect of open enrollment as cited by nearly 30% of respondents.
"It's encouraging to see that most employees have a favorable view of their open enrollment experience," continued Fielder. "Building on that, employers have an opportunity to continue educating and engaging employees on workplace retirement benefits leading up to, through and beyond the open enrollment period with targeted communications, planning tools and resources, and with some plans, access to a financial professional."
Additional insights on the 2024 Corebridge Open Enrollment survey can be found at Corebridge Insights & Education.
Methodology
The 2024 Corebridge Open Enrollment survey was conducted online by Morning Consult on behalf of Corebridge Financial between Aug. 2-3, 2024, among a national sample of 1,035 adults.
About Corebridge Financial
Corebridge Financial, Inc. (NYSE:CRBG) makes it possible for more people to take action in their financial lives. With more than $390 billion in assets under management and administration as of June 30, 2024, 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, YouTube and Instagram.
1. Fees, taxes, and rate of inflation are not included in calculation.
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