2012 Hot Topics in Retirement - Aon

Employer Matching Contributions
Investment Advisory Solutions
and Features
Employer matching contributions have been top of mind amid the economic
downturn, as some employers reported temporary suspensions or reductions
in their matching contributions. Twenty-six percent of plans surveyed either
suspended or reduced company matching contributions in the past few
years. The good news for many employees is that these changes appear to
have been temporary. Of those employers that reduced or suspended the
match, only 15% reported that they have no plans to reinstate the match.
The remainder have either already reinstated the match (74%) or will do so
in 2012 (8%).
Company Matching Contribution Changes in the Past Few Years
Changes Made
Company matching contribution has not
changed and is not likely to
Company matching contribution was
suspended previously
Company matching contribution was
reduced previously
Company matching contribution is not
suspended, but we are likely to in 2012
Other
(n=364; multiple responses)
Percentage of Plans
74%
17%
11%
Most employers now have features in their defined contribution plans to
help participants select appropriate investments. The vast majority (79%)
now o�er target-date portfolios to simplify participants’ investment decision
making. Additionally, 59% of plans now o�er online investment guidance,
and nearly 40% o�er online investment advice and/or managed accounts.
In 2012, the prevalence of investment advisory solutions is expected to
expand, with more plan sponsors acknowledging the value of multiple
solutions to meet the varied needs of employees. Among plans that do not
currently provide online investment guidance, 37% of respondents are very
or somewhat likely to o�er it, while 26% are likely to adopt online advice in
2012. Additionally, 24% (of those not o�ering) noted that they were very
or somewhat likely to add managed accounts during 2012.
1%
1%
Aon Hewitt 23