Retirement Plan Inertia Driven by Awareness Gap, Ascensus Research Finds
Event summary
- Ascensus released the 'Eligible Not Contributing Employee' (ELND) Survey, revealing 60% of eligible, non-contributing employees cite lack of awareness/understanding as the primary reason.
- The survey, conducted between July 16 and August 15, 2025, polled over 186,000 eligible, non-participating employees.
- Gen Z demonstrates the lowest participation rate at 50.5%, compared to 38.3% of Millennials and 37.2% of Gen X.
- Ascensus manages over $932 billion in assets under administration as of December 31, 2025.
The big picture
Ascensus's research highlights a critical disconnect between retirement plan accessibility and actual employee participation, a challenge underscored by broader data indicating widespread retirement savings insecurity. The findings suggest that simply offering retirement plans is insufficient; targeted education and simplified enrollment are essential to address the awareness gap, particularly among younger generations. This represents a significant opportunity for Ascensus to expand its service offerings and solidify its position as a key player in the retirement savings ecosystem.
What we're watching
- Engagement Strategies
- Ascensus's ability to translate these findings into scalable solutions for employers will be crucial; the company's success hinges on demonstrating tangible improvements in plan participation rates.
- Generational Shift
- How recordkeepers adapt their communication and enrollment processes to resonate with Gen Z’s digital consumption habits will significantly impact long-term retirement savings participation.
- Regulatory Response
- The findings may prompt increased scrutiny and potential regulatory interventions aimed at improving retirement plan education and enrollment, impacting Ascensus's business model and client offerings.
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