While you might not feel as committed to 401(k) plans as markets roil, luckily, most companies still are. U.S. corporations understand that a 401(k) is a favorite employment perk.
Charles Schwab's 2023 401(k) Participant Study revealed that 88% of workers considered access to this type of workplace plan a must-have benefit, with a 401(k) plan second only to employer-sponsored health insurance in terms of fringe benefits that are considered essential.
Fortunately, workplace retirement plans are available to almost 75% of workers. The good news is that employers are very committed to continuing to offer them.
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The 2025 Enduring Retirement Model Study conducted by MetLife makes clear that plan sponsors understand how vital 401(k)s are, and most would not only not eliminate them but would also be reluctant to implement major changes.
Here's what employers had to say about their intentions to offer retirement benefits going forward.
Majority of employers are committed to 401(k) plans for the foreseeable future
MetLife asked employers that sponsor retirement plans if they ever envisioned a time when their company would no longer offer retirement benefits. In total, 82% said they couldn't, while 11% said possibly, and 7% said yes.
With more than eight in 10 companies committed to continued benefits, workers don't need to worry that the current 401(k) system will change soon.
Companies also made clear there are a multitude of reasons why they have no interest in altering the status quo when it comes to their retirement plan offerings. Here's how the companies responded.
- 69% believe providing retirement benefits gives them a competitive advantage.
- 57% said it demonstrates their commitment to employee welfare.
- 52% offer plans because doing so enables their workers to be financially prepared for retirement.
- 40% described their retirement plans as "deeply ingrained in their company’s culture."
For workers who prioritize consistency when it comes to benefits planning, the MetLife report contained more good news. In total, 87% of 401(k) plan sponsors made clear their company is not considering any significant changes to their workplace retirement benefit plans.
The humble 401(k): Imperfect but loved
None of this should come as a surprise, as retirement as a workplace benefit is deeply ingrained in U.S. culture, with the first private pension plan in the U.S. established as far back as 1875.
The system has shifted from defined-benefit pension plans offering guaranteed income to defined-contribution plans that employees invest in (often with company matching funds).
Laws such as the Employee Retirement Income Security Act of 1974 helped to formalize and strengthen these employer-provided plans, offering workers added assurances that their invested funds will provide for their futures.
Now, neither employees nor employers seem eager to change that, despite the MetLife study making clear that the "employer-based framework means that American companies are shouldering costs that their global competitors are not.”
Contributing to your workplace plan is a safe, effective way to save for retirement
Continued employer investment in workplace retirement plans is great news for workers, as these plans are an excellent way to save for the future. They also provide generous tax breaks and other advantages.
One major benefit is that investing is made easier with a workplace plan. When plans are offered, most workers take advantage of them, with 73% of private-sector workers and 71% of all workers with access to retirement savings plans investing in them.
Auto-enrollment, or signing up new staff members by default unless they opt out, plays a part in these high participation rates, with 83% of auto-enrolled employees making contributions.
Employees who sign up for workplace plans typically also have their contributions taken directly from their checks before they get paid, so there's no chance of spending the money elsewhere and no tough decisions to be made each month about how much to invest.
When employers match contributions to retirement plans, this also provides additional incentive to invest and helps balances grow. Workplace plans typically offer limited investment choices, with many defaulting to target date funds. This can be a downside for some but encourages others to participate since they aren't overwhelmed with too many asset choices.
Workers will continue to enjoy these perks for the foreseeable future, thanks to the strong ongoing support of the workplace retirement plan model by most participating businesses.
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