Making Retirement Affordable
When employees postpone retirement because they don’t feel financially prepared, the impact extends well beyond the individual. Delayed retirements can increase healthcare and compensation costs, slow career advancement opportunities for younger employees and make recruitment and retention more complicated. Helping employees become retirement-ready isn’t simply a valuable benefit — it’s a smart business strategy. The good news is that plan sponsors have significant influence over retirement outcomes through thoughtful plan design and employee support.
Auto Features Are Working Better Than Ever
Automatic enrollment and escalation remain two of the most effective ways to improve retirement outcomes. According to Vanguard’s How America Saves 2026, 61% of retirement plans now feature automatic enrollment, with a participation rate of 94% (versus 64% participation among plans without auto enrollment). In addition, 45% of auto-enrolled participants increased their deferral rate during the year — either on their own or through automatic escalation. Vanguard also found that longer-tenured employees in plans with automatic enrollment save roughly 65% more than those in voluntary enrollment plans.
Supplementary Employee Support is Essential
Plan design, however, is only part of the solution. The 2026 EBRI Retirement Confidence Survey found that just 64% of Americans say they feel confident they have enough money to live comfortably throughout retirement. In addition, the 2025 Schwab Participant Outcomes Survey found that while 90% of participants say being on track for retirement is a priority, only 57% believe they are. And that number is more than double the 26% who are actually on track, based on retirement readiness modeling. Ongoing retirement income planning, budgeting assistance, debt management resources, emergency savings programs and access to personalized financial guidance can all help improve employees’ retirement confidence.
The Plan Advisor’s Role
Many retirement plan advisors now offer retirement readiness analyses that use participant data — including age, salary, account balances, savings rates, projected Social Security benefits and other factors — to estimate whether employees are on track to replace enough income in retirement. These reports can identify at-risk individuals or cohorts and model how changes such as automatic escalation, increased employer contributions or enhanced financial wellness programs could improve overall retirement outcomes.
Ultimately, the most successful retirement plans are best measured by outcomes. When employees have the confidence and financial resources to retire on time, everyone benefits.
Help Employees Retire with Confidence
TRA partners with plan sponsors to design retirement plans that drive participation, improve savings outcomes and support long-term retirement readiness. From plan design consulting and administration and compliance support, our team can help you build a retirement program that benefits both employees and your organization. Contact TRA today to learn how we can support your retirement readiness strategy.
