As a plan sponsor or financial decision-maker, you're responsible for far more than simply offering a retirement plan. You’re also a steward of your employees’ financial futures, and mid-year is the perfect time to pause and ask:
Is your 401(k) plan still doing what it’s supposed to do?
Recent data from the 2025 Northwestern Mutual Planning & Progress Study reveals that Americans believe they need $1.26 million to retire comfortably. But here’s the reality:
1 in 4 Americans with retirement savings have only one year’s worth of income saved, or less.
51% believe they’re likely to outlive their savings
It’s a clear signal: while retirement expectations remain high, actual readiness is falling short, and that gap impacts your employees and your business.
Why the Disconnect?
There are a few key reasons retirement goals and savings often drift apart:
1. People Start Saving Too Late
On average, Americans don’t begin saving for retirement until age 31. That leaves limited time to build a substantial nest egg, especially in volatile markets. Gen Z is trending better, starting around age 24, but many older workers are still catching up.
2. Rising Costs Are Outpacing Savings
Inflation and rising healthcare, housing, and long-term care costs are putting pressure on savings. A million-dollar retirement fund simply doesn’t stretch as far as it used to, especially for those planning for a 25- to 30-year retirement horizon.
3. A Focus on Growth Without Protection
Many workers are focused on growing assets, but overlook essential protection strategies like budgeting, insurance, or long-term care planning. As a plan sponsor, you play a key role in bringing balance to their financial strategy through education and plan design.
What You Can Do Right Now
A mid-year check-in gives you the opportunity to:
Reassess your plan’s fee structure and investment lineup
Evaluate participation and deferral trends
Review fiduciary practices and documentation
Understand which employee groups may be falling behind
Ensure your plan aligns with your company’s goals
The good news? You don’t have to do this from scratch.
Download the Mid-Year 401(k) Plan Sponsor Checklist
We’ve created a free, one-page checklist designed specifically for plan sponsors and HR leaders. It’s a quick, actionable guide to evaluate the five most important areas of plan performance, helping you stay compliant, competitive, and aligned with your workforce’s retirement goals.
📥 Download the Checklist Now
Use it to guide your next committee meeting or prepare for a fiduciary review. It’s a small step that can help you make a big difference.
Need support reviewing your plan?
At Deschutes Investment Consulting, we help plan sponsors benchmark fees, enhance participant outcomes, and stay ahead of compliance requirements. If you’re due for a second opinion, we’re here to help.
Schedule a Complimentary Plan Review