New Ascensus Research Reveals Why Millions of Eligible Workers Do Not Contribute to Their Retirement Plans
Surprisingly Awareness and Understanding, Not Affordability, Drives Inaction
Dresher, PA—Ascensus, the leading independent technology and service platform powering savings plans across America, 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 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% 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).
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, 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 ten 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 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.
Summary of Survey and Proprietary Data Findings:
- Lack of awareness and understanding—not cost—drives non-participation: 60% of non-participation is driven by lack of awareness or understanding of plan features vs. 23% of non-participation is driven by perceived unaffordability
- Confusion remains a major barrier to participation: 30% of employees indicated they did not know how the plan works or even how to get started.
- Delay significantly reduces the likelihood of future enrollment: For employees unenrolled for 24 months, the likelihood of never enrolling doubles.
- Targeted education to address plan understanding and plan enhancements could meaningfully motivate action: 50% of employees cited the areas with improving plan understanding motivating 27% to action, 13% citing plan offering employer match, and 10% citing simplified enrollment.
- Gen Z requires a different approach: 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, pointing to the importance of responding to this digital native generation and how they consume information and make decisions when it comes to addressing plan awareness and education.
About the Survey
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.
About Ascensus
Ascensus is the leading independent technology and service platform powering savings plans across America, providing products and expertise that help more than 16 million people save for a better today and tomorrow. Ascensus has more than $932 billion in assets under administration and employs more than 5,000 associates as of December 31, 2025.
Ascensus offers comprehensive qualified and nonqualified retirement plan solutions, third-party retirement plan administration, 529 education and ABLE savings program administration, corporate-and bank-owned life insurance solutions, and fiduciary and total rewards services. Sitting at the intersection between savers, program sponsors, investment managers and financial advisors, our platforms, industry knowledge, and data-based insights enhance the growth and success of our partners, clients, and savers through co-branded, private-labeled, and governmental partnerships.
For more information, visit ascensus.com.
