In the U.S., open enrollment is an important time (often in the fall) when employees make benefit selections for themselves and their family members – typically for health, dental, life insurance, and sometimes pet insurance and legal services.
But did you know that more than 80 percent of employees think it’s a good idea to also review their retirement plan contributions during open enrollment?
This finding and more from Corebridge Financial’s open enrollment survey highlights the importance of helping employees make decisions during key moments of focus, when they are already considering actions with implications for their financial wellbeing.
Planners save more
Just over three quarters of employees say they plan in advance for their open enrollment period, while about one in four employees (23%) do no planning at all. This is significant, because those who plan ahead are more than twice as likely to increase their retirement plan contribution during open enrollment than those who don’t plan (48% vs. 19%).
In addition, 42 percent of planners say they include a review of their retirement plan during open enrollment, compared to only 25 percent of non-planners.
Helping non-planners focus on their benefits ahead of open enrollment may have the potential to improve retirement plan contributions and overall financial awareness. Offering educational webinars about plan contributions in the weeks before open enrollment could help more employees prepare for benefit selection and consider how their retirement plan fits into their overall financial strategy, helping improve their retirement readiness over time.
Younger employees are eager to save
Out of 41 percent 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.
When asked if they will increase their contribution by 2 percent or more during open enrollment, Gen Z workers were most likely to say they would increase their contribution. More specifically, 51 percent of Gen Z said they plan to increase their contribution by 2 percent or more.
Ongoing support and education can simplify enrollment
While more than 8 in 10 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 percent), followed by access to more interactive educational tools (40 percent).
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 percent of respondents.
More opportunities for contribution increases
Understanding what motivates employees to increase their contribution rates can help build a robust communication plan that reinforces key moments throughout the year. This can be around known dates – such as when raises are given or when an employee takes on a new role or a promotion – and unknowns that are personal to the plan participants, such as paying off debt or major life events like marriage, homeownership, and more.
Coupling this communications strategy with automatic enrollment and escalation features (if allowed in your plan) can help more employees get started on the right path and make important changes over time.
At Corebridge, we believe that great things can happen when people take action. Action is everything.
We’re committed to helping Americans actively plan and prepare for retirement through the resources, tools and solutions we offer—and through the financial professionals and institutions we proudly partner with.
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.