90-10-90 RULE | Allworth Financial

If you, your plan, or your participants suffer from poor participation, low deferral rates, or shortsighted investment decisions, you are not alone. Here are three major obstacles that sponsors need to overcome to help produce better retirement plan outcomes!

Major Obstacles

Poor Participation
Of the 8 out of 10 full time workers having access to an employer-sponsored retirement plan, only 65% participate.¹

Low Deferral Rates
Deferral rates are climbing; the new average deferral rate = 6%.⁴

Shortsighted Investment Decisions
9 in 10 participants express regret about not doing a better job at saving for retirement.⁶

Use the 90-10-90 Rule

Aim for: 90% Participation Rate

• Boost Participation with Automatic Enrollment!
• The auto-enroll feature increases participation rates from 57% to 92%.²
• 3 in 4 participants say YES to automatic enrollment at 6%.³

Aim for: 10% + Deferral Rate

• Boost Deferral rates with Automatic escalation.
• 71% of employees enrolled in automatic annual increase programs choose to remain in them. ⁵
• 4 in 5 participants say YES to automatic increases. ³
• Boost Deferral rates with enhanced match formulas.
• 3 out of 4 employees prefer a 3% match over a 3% raise in pay. ³

Aim for: 90% Investments to be managed or use QDIA

• Enhance investment glide paths with QDIA.
• 4 in 5 participants say YES to (QDIA) re-enrollment.³
• Reach out to employees who may have previously opted out of saving with re-enrollment.
• 60% of participants say YES to retroactive automatic enrollment.³

To review your company’s plan information and learn how applying the 90-10-90 Rule might help improve your
organization’s retirement plan, contact us today.