Helping Your Employees Retire on Time Is Good for Them and Good for Your Business
When employees postpone retirement because they don't feel financially prepared, the impact extends well beyond the individual. Delayed retirements can increase healthcare and compensation costs, slow career advancement opportunities for younger employees and make recruitment and retention more complicated. Helping employees become retirement-ready isn't simply a valuable benefit — it's a smart business strategy. The good news is that plan sponsors have significant influence over retirement outcomes through thoughtful plan design and employee support.
Automatic enrollment and escalation remain two of the most effective ways to improve retirement outcomes. According to Vanguard's How America Saves 2026, 61% of retirement plans now feature automatic enrollment, with a participation rate of 94% (versus 64% participation among plans without auto enrollment). In addition, 45% of auto-enrolled participants increased their deferral rate during the year — either on their own or through automatic escalation. Vanguard also found that longer-tenured employees in plans with automatic enrollment save roughly 65% more than those in voluntary enrollment plans.
Plan design, however, is only part of the solution. The 2026 EBRI Retirement Confidence Survey found that just 64% of Americans say they feel confident they have enough money to live comfortably throughout retirement. In addition, the 2025 Schwab Participant Outcomes Survey found that while 90% of participants say being on track for retirement is a priority, only 57% believe they are. And that number is more than double the 26% who are actually on track, based on retirement readiness modeling. Ongoing retirement income planning, budgeting assistance, debt management resources, emergency savings programs and access to personalized financial guidance can all help improve employees’ retirement confidence.
Many retirement plan advisors now offer retirement readiness analyses that use participant data — including age, salary, account balances, savings rates, projected Social Security benefits and other factors — to estimate whether employees are on track to replace enough income in retirement. These reports can identify at-risk individuals or cohorts and model how changes such as automatic escalation, increased employer contributions or enhanced financial wellness programs could improve overall retirement outcomes.
Ultimately, the most successful retirement plans are best measured by outcomes. When employees have the confidence and financial resources to retire on time, everyone benefits.
Informational Sources: Vanguard: “How America Saves 2026 (25th Edition)” (June 2026); Employee Benefit Research Institute (EBRI): “2026 Retirement Confidence Survey” (April 2026); Schwab: “2025 Participant Outcome Survey” (September 29, 2025); CapTrust: “Plan For a Smarter Plan” (September 26, 2025).
Kmotion, Inc., 12336 SE Scherrer Street, Happy Valley, OR 97086; 877-306-5055; www.kmotion.com
©2026 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance, nor as the sole authority on any regulation, law, or ruling as it applies to a specific plan or situation. Plan sponsors should always consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.
This material is intended to provide general financial education and is not written or intended as tax or legal advice and may not be relied upon for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.