While the widespread adoption of default investments and automatic plan features has helped more individuals save for retirement, it has also contributed to participants taking a “set it and forget it” approach to saving. Cerulli recommends recordkeepers and plan advisors support plan sponsors repositioning the 401(k) plan as a benefit meant to help with overall financial planning, that also offers the opportunity to save for retirement and potentially garner an employer match. This frames the retirement benefit as something every participant can take advantage of, regardless of their ability to contribute.

How Can Recordkeepers Get More Engagement?

Recordkeepers should guide participants to help them determine their optimal retirement savings goal, target retirement date, or overall vision for their life in retirement. Developing personalized prompts for participants to reassess their goal, track progress on their goal, and update their information, at least annually, drives engagement and provides a basis of conversation with the participant. Additionally, they can also take lessons from employee benefit enrollment to guide participants toward active decision-making on an annual basis.

Recordkeepers and Wealth Managers: Take Note

Despite continued innovation in the defined contribution landscape aimed at improving retirement readiness, many 401(k) participants will save, invest, and eventually retire without working with an advisor. Cerulli finds that the majority (63%) of active 401(k) participants do not have a financial advisor. Where and when are the right entry points for providing financial advice?

To learn more, access The Cerulli Report—U.S. Retirement End-Investor 2025. This research offers complete sizing of the 401(k) and individual retirement account (IRA) markets, representing Cerulli’s most comprehensive investor-level retirement research, and includes analysis of the savings and decision-making behavior of 401(k) participants.