Companies want their employees to save more for retirement via 401(k) plans. To do this some companies are increasing the amount of an employee's salary that is automatically deducted into a retirement account. In the past, 3% was the default amount to deduct, but in 2014, 39% of company plans deducted more than that from workers’ salaries. Despite these efforts, 40% of working households with people between the ages of 25 and 64 haven’t saved anything for retirement
Corporations have many reasons for compelling workers build up their nest eggs. Offering a large match on retirement contributions is a lucrative employee benefit that can be used as a recruitment tool. Getting workers to think about retirement now will also help get them out the door when they’re old. That way, companies can more easily refresh an aging workforce with young employees. These companies still aren’t really offering their workers a true safety net. They’re just encouraging employees more to build one for themselves. Despite these efforts, 40% of working households with people between the ages of 25 and 64 haven’t saved anything for retirement, according to the National Institute on Retirement Security.