According to the 2025–2026 Compensation, Retirement, and Benefits Trends Report by Ascensus, 98% of U.S. employers now offer a qualified retirement plan. What was once a differentiator has become a baseline expectation for attracting and retaining talent.
As retirement benefits become standard, the conversation for employers is shifting. The question is no longer whether to offer a retirement plan, but how well that plan is designed, governed, and supported.
Below are several key findings from the report—and what they mean for Plan Sponsors.
Retirement Plans Are the Norm—But Design Still Varies
While nearly all employers offer a qualified retirement plan, plan generosity and structure differ significantly.
- 56% of employers match between 3% and 4.9% of pay
- Approximately 30% match more than 5% of pay
These figures highlight an important reality: simply offering a plan doesn’t guarantee competitiveness. Plan design decisions, such as match structure, eligibility, and investment options play a meaningful role in employee engagement and long-term retirement outcomes.
For many businesses, this is where periodic plan reviews become valuable, especially as workforce demographics and compensation strategies evolve.
Employers Are Leaning on Plan Advisors More than Ever
As retirement plans grow more complex, employers increasingly rely on professional support.
- 91% of employers use a Plan Advisor for retirement plan administration
- 65% of advisor relationships have lasted more than five years
These long-term relationships suggest that Plan Sponsors recognize the value of consistent fiduciary guidance, investment oversight, and coordination among service providers.
An experienced Plan Advisor can help employers:
- Clarify fiduciary responsibilities
- Coordinate between Recordkeepers and Third-Party Administrators
- Monitor investments and fees
- Support plan governance and documentation best practices
For many Plan Sponsors, this support helps reduce administrative burden while improving confidence in plan oversight.
What Keeps Plan Sponsors Up at Night?
Despite widespread adoption, many employers still express concern about their retirement plans. When asked, “What keeps you up at night about your organization’s current retirement plan offering?”, respondents cited:
- 27% – Fiduciary risk
- 21% – Participation rates
- 20% – Quality of service for themselves and their employees
- 17% – Fees
- 15% – Administrative burden
These responses reinforce a critical point: Plan Sponsors aren’t just focused on cost. Fiduciary responsibility, employee engagement, and service quality weigh just as heavily.
Service Quality Matters More Than Cost Alone
The report also sheds light on what drives employers to change providers. When asked about the top reasons for choosing a new provider versus staying with a current one, 71% cited level and quality of service as the most important factor. The second and third most important factors were cost of service and ease of administration.
This finding is especially telling. While cost remains important, employers are prioritizing reliable service, responsiveness, and operational simplicity—recognizing that poor service can increase fiduciary risk and internal workload over time.
What This Means for Plan Sponsors
With retirement plans now nearly universal, employers face increasing pressure to ensure their plans are:
- Appropriately designed
- Cost-effective
- Well-governed
- Aligned with employee needs
Regularly reviewing plan structure, provider relationships, and fiduciary processes can help employers confirm their plan remains competitive—and compliant—as expectations continue to rise.
How We Can Help
iQ401k was built to help employers navigate the growing complexity of workplace retirement plans. Our approach focuses on simplifying plan oversight, coordinating providers, and helping Plan Sponsors understand their fiduciary responsibilities—whether they’re reviewing an existing plan or considering a new one.
If you’re evaluating whether your retirement plan still aligns with your business goals, we’re always happy to be a resource.