Beyond the Match: What Today’s Employees Really Expect from 401(k) Plans

Retirement benefits are evolving. Discover the new features employees value most in their 401(k) plans and how your business can deliver them.

What Employees Actually Want from Their 401(k) Plans

Employers often assume that employees simply want a retirement plan with investment options and a company match. But in reality, what employees value most from their 401(k) plans is evolving—and recent legislation such as SECURE Act 2.0 has only accelerated these expectations.

Today’s employees are looking for simplicity, flexibility, and support. They want retirement plans that are easy to navigate, with user-friendly technology and transparent communication. Workers also value flexibility in contributions, investment options, and the ability to save for both retirement and other financial priorities.

For example, SECURE Act 2.0 now allows employers to match student loan repayments as if they were 401(k) contributions—a feature that resonates strongly with younger professionals burdened by education debt.

Employees also want reassurance that their employer is acting in their best interest. That means access to low-cost, high-quality investment options, fiduciary oversight, and ongoing plan monitoring to ensure fees are reasonable and performance is competitive.

Education is another priority: employees want more than enrollment paperwork—they want tools, workshops, and one-on-one support to make informed decisions about their financial future.

A well-designed 401(k) plan has become a key part of an employer’s value proposition in the talent market. Offering a modernized plan—especially through a Pooled Employer Plan (PEP)—signals that the company takes employee financial wellness seriously.

By reducing fees through pooled scale, simplifying administration, and enhancing employee support, a PEP can deliver exactly what employees are asking for: transparency, empowerment, and a real pathway toward long-term financial security.