How Far Will Participants Stretch for the Match?

By NAPA Net Staff • 5/6/2015 • 0 Comments

The employer match has proven to be a powerful draw over the years — but a new survey suggests there are limits.

Asked how they would respond if match levels were as low as “100% of the first 3% of salary,” 87% of respondents to the 2015 PLANSPONSOR Participant Survey said they were willing to save enough to receive the maximum match. However, that figure dropped to 59% when the match level was stretched to “50% of the first 6% of salary.”  At “25% of the first 12% of salary,” just four-in-ten were willing to contribute to get the full match.

While overall fewer participants maximized the stretched match, about a quarter (28%) did show a willingness to increase their contribution when the match threshold was raised to 6%, and half that many (13%) increased their deferrals above 6% when the match was stretched again. 

Of course, there might be a difference between what participants say they would do, and what they would actually do.

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Comments (1)

The first time I heard about this concept (Stretch the Match), something didn't sound right. The more I thought about it, the more it bugged me.... Read more
5/6/2015 12:38 PM
Thane Walton