Lasting impacts brought on by the COVID-19 pandemic have caused major barriers for employees to reach financial wellness and retirement readiness goals. As a result, BlackRock says, more plan sponsors are taking steps to tackle the changing environment for their workers.

The 2021 “BlackRock DC Pulse Survey” found that 61% of the 225 large defined contribution (DC) plan sponsors surveyed said at least half of their employees faced negative impacts with their retirement readiness. Fifty-two percent of employers also noted that more participants withdrew or borrowed money from their retirement savings than normal due to COVID-19.

Consequently, almost all plan sponsors surveyed feel accountable for the financial and overall well-being of their employees. Ninety-six percent surveyed say they have a sense of responsibility for their employee’ retirement readiness and general financial well-being, and 68% say helping participants with retirement income has become even more important to them due to the pandemic. Thirty-seven percent cite the impact of COVID-19 as the most important factor in considering changes to their plan.

Still, most plan sponsors are sure there will be a recovery in retirement income and readiness. Fifty-three percent of employers stated they are highly confident in the current state of their participants’ retirement readiness, and 61% are highly confident in their ability to educate participants about their plan.

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