With more than half of Americans not saving enough for retirement, the Financial Services Roundtable (FSR), Washington’s leading financial trade association, recognized IBM with a “Save 10” award for their efforts to help their employees prepare for a secure retirement by enabling them to save 10% of their income, FSR announced last Monday.
The newly-launched “Save 10” campaign is a business-to-business effort to help encourage responsible employers to help their employees save for a secure future by initiating programs to encourage employees to put aside 10% or more of their income each year.
“One of the best ways to increase retirement savings in America is through employers and IBM is leading the way,” stated FSR CEO and former Minnesota Governor Tim Pawlenty. “'Save 10' will be an easy way for workers to think about saving. There are many companies like IBM helping to put their employees on the right path to savings and Save 10 will recognize those employers in an effort to encourage others in the marketplace to follow suit.”
One of the cornerstones of "Save 10" is to encourage “auto-save” programs, which includes programs such as auto-enrollment in a retirement plan upon being hired and auto-escalating an employee’s savings contributions as their income rises. Nearly 82% of employees save for retirement when their employers offer an Auto Save program compared with just 64% when employers do not. The Save 10 campaign aims to fundamentally change these facts.
To be considered for recognition as a "Save 10" employer, companies must certify that they engage in certain activities that qualify the company as "Save 10" certified. These activities include offering a retirement plan, contributing to employee retirement accounts, ensuring employees can “keep 10” by providing access to disability and life insurance plans and other criteria.
For more information on the "Save 10" campaign, head to their site here.