DRESHER, PA — Ascensus said most employees who are eligible for workplace retirement plans but do not participate are held back by lack of awareness and understanding rather than affordability, according to its Eligible Not Contributing Employee Survey.
The company said 60% of nonparticipation is driven by limited awareness or understanding of plan features, compared with 23% citing affordability concerns.
The survey, conducted between July 16 and August 15, 2025, included more than 186,000 eligible employees who had not enrolled in their workplace retirement plans.
Ascensus said confusion remains a significant barrier, with 30% of respondents reporting they did not understand how their plan works or how to get started.
“Access to retirement savings is critical, but not sufficient,” said Nick Good, chief executive officer of Ascensus. “If employees do not understand their plans or how to begin, they rarely take action.”
The company said timing plays a critical role in participation, with employees who remain unenrolled for 24 months twice as likely to never enroll.
Ascensus said early employer communication and onboarding are key factors in influencing participation behavior.
When asked what would motivate them to begin saving, 50% of respondents cited targeted education and plan enhancements.
The company said 27% identified improved understanding of plan features as the most important factor, while 13% pointed to employer matching contributions and 10% cited simplified enrollment processes.
Ascensus also reported generational differences in participation rates, with 50.5% of eligible Gen Z workers not enrolled, compared with 38.3% of Millennials and 37.2% of Gen X.
The company said the findings highlight the need for different engagement strategies, particularly for younger workers who may face financial pressures and consume information differently.
Ascensus said the results reflect broader national trends, citing research indicating that nearly half of U.S. households are at risk of not having sufficient retirement income and that many adults lack confidence in their long-term financial preparedness.
The company said insufficient engagement with employer-sponsored savings plans is a key contributor to the retirement savings gap.
Ascensus said it plans to use the findings to improve plan participation through enhanced education, personalized communication, and plan design changes.
The company provides retirement, education, and savings plan services to more than 16 million individuals and administers approximately $932 billion in assets as of December 31, 2025.
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