Retirement Service Consultant

Why millions of eligible workers do not contribute to their retirement plans: it's not what you think. Ascensus research finds lack of awareness and understanding of plan features drives inaction much more than perceived unaffordability March 10, 2026 A new study on workplace retirement plan enrollment trends reveals that a lack of awareness and understanding of plan features - not cost - is the primary driver of non-participation. Ascensus today released the first Eligible Not Contributing Employee (ELND) Survey to understand why millions of employees who are eligible to participate in their workplace retirement plan are not contributing. Counter to expectations, the findings show that lack of plan awareness and understanding of plan features like employer match drive 60% of inaction versus perceived unaffordability of retirement savings at 23%. In fact, 30% of employees indicated they did not know how the plan works or even how to get started. The research also underscored the importance of early employer communications and education because time since eligibility is one of the strongest predictors of whether an employee will ever begin saving. Once employees remain unenrolled for 24 months, the research found likelihood of never enrolling doubles. "Access to retirement savings is critical, but not sufficient to solve the retirement savings crisis in America," said Nick Good, CEO of Ascensus. "If employees do not understand their plans or how to begin, they rarely take action. Clearer onboarding and enrollment, smarter personalization to encourage savings, and coordinated education with employers all help more individuals move from eligibility to actively saving." When asked what would motivate them to start saving, targeted education to address plan understanding and specific plan enhancements rose to the top with 50% of employees citing those areas. Twenty-seven percent said improving plan understanding would motivate them to action, with two specific plan enhancements also noted (13% citing plan offering employer match, and 10% citing simplified enrollment). Gen Z slow to enroll. Additionally, proprietary data from Ascensus reveals sharp gaps in enrollment across generations. More than half of Gen Z workers eligible to enroll are not participating (50.5%), compared with 38.3% of Millennials and 37.2% of Gen X. This points to the importance of understanding saver preferences when it comes to driving awareness and participation in retirement plans. For Gen Z in particular, while they face outsized financial pressures compared to other generations, the study found employers and recordkeepers must consider how to conform to this digital native generation and how they consume information and make decisions. These findings reflect a broader, industry-wide challenge. Research from the Pew Charitable Trusts shows that nearly half of U.S. households are at risk of not having enough income to maintain their standard of living in retirement, and that insufficient engagement and access to employer facilitated savings vehicles are major contributors to the growing retirement savings gap. In parallel, Pew Research Center reports that four in 10 U.S. adults are not confident they will have enough money to last throughout retirement, reinforcing that uncertainty and lack of preparedness are widespread, not isolated issues. By pairing research-backed insights with scalable solutions, Ascensus said in a press release today it is committed to strengthening plan participation, improving savings behavior, and helping more Americans build lasting financial security - not just at the point of access, but throughout their savings journey. The Ascensus Eligible Not Contributing Employee (ELND) Survey was conducted between July 16 and August 15, 2025, and distributed to more than 186,000 eligible but nonparticipating employees. With more than $932 billion in assets under administration, Ascensus is a leading independent technology and service platform powering savings plans for more than 16 million people across America. Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business. January 26, 2026 In "401(k) Practice" January 20, 2026 In "401(k) Practice" February 26, 2026 In "Opinion Articles"

Ascensus hits $300B in 529 assets. Ascensus saw over 800,000 new 529 accounts open and over $25 billion in contributions in 2025 Ascensus today announced that it has surpassed $300 billion in total 529 plan assets. The platform currently serves as the country's largest 529 provider, with over 8.5 million accounts as of Jan. 12. It administers 51 state-sponsored 529 plans in the U.S., where it is responsible for supporting program operations, participant servicing, compliance, and technology. The platform administers these plans across 31 states and Washington, D.C. "Reaching this milestone is a reflection of the trust that states, families, and partners place in Ascensus to operate these programs reliably and at scale, and it feels even more remarkable to achieve this during the 30th anniversary of the 529," said Peg Creonte, president of Government Savings at Ascensus, in a statement. "Ascensus extends its deep appreciation to our state partners for their commitment to growing 529 plans and for embracing the technology and tools that are helping families save with greater confidence and convenience." Ascensus saw over 800,000 new 529 accounts open and over $25 billion in contributions in 2025. This includes $1.4 billion paid through Ugift, a platform that allows families and supporters of 529 account holders to gift contributions. According to Ascensus, account holders have used over $20 billion of 529 account savings towards qualified education expenses. 529 plans provide a tax-advantaged way to save and pay for education-related costs, including tuition and college expenses. Account holders contribute after-tax dollars to the accounts but can withdraw the money tax-free to pay for education expenses. Any unused funds can also be transferred to a Roth individual retirement account (IRA) to use for retirement needs. Despite its popularity, some Americans remain oblivious to 529s and its benefits. Findings from Edward Jones last year shows that 52% of Americans remain unaware of what a 529 plan is, and only 14% have either used or say they are planning to incorporate the tool as part of their education savings strategy. Ascensus has over $919 billion in assets under administration (AUA) and employs over 5,000 associates as of Sept. 30, 2025. Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.

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