Question: We’ve spent significant time this year enhancing some features of our 401(k) plan to make it as attractive as possible to potential new hires. Are there any statistics regarding employers permitting immediate eligibility for plan participation?
Answer: Employers have reevaluated their retirement plan designs with an eye toward making it easier for employees to join plans and start saving, according to new Vanguard Group data. For Vanguard recordkeeper plans, 72% of employers permitted employees to participate in the plan immediately, compared to 58% in 2012; 86% allowed for entry within three months of employment. For insight on additional potential plan design enhancements, click here to check out Vanguard’s “The Changing Workforce Environment: How Employer Plans Can Help Attract and Retain Employees” (March 2023).