Employers are doing a better job of helping their workers save for their retirement, with 69% permitting new employees to begin contributing to their 401(k) within three months, up from 65% in 2005, sister publication Employee Benefit News reports.
The Profit Sharing/401(k) Council of America also found that among large employers with 1,000 or more employees, nearly 85% offer eligibility within three months, up from 79% in 2005.
“Shorter eligibility periods are good news for workers,” said David Wray, president of the Profit Sharing/401(k) Council. “Basically, we don’t want a participant’s 401(k) savings to be interrupted when they change jobs. You want a system where employees are constantly in a savings status.”