BOSTON (8/13/14)--Scores of employees across the country would rather their employer make larger contributions to their 401(k) than pull in a larger paycheck, a recent survey by Fidelity Investments found.
In fact, more than 4 of 10 workers polled said they would even prefer to see their compensation lowered if it meant a higher employer contribution to their 401(k).
"Employer contributions play a vital role in helping Americans reach their retirement savings goals," said Doug Fisher, senior vice president of workplace investing at Fidelity. "These contributions represent more than 35% of the total contributions on average to an employee's workplace savings account."
According to the study, which polled about 1,027 people focusing on compensation scenarios, workers were more likely to take a job where the company matched part of its overall compensation package.
Only 13% of respondents said they would accept a position at a company that didn't offer an employer match, even if the pay was better.
The study also revealed that employees are using 401(k)s as their only source of savings for retirement, with 42% indicating that they aren't saving for retirement through any other means.
While employees should perhaps take steps to save for retirement in other ways, it seems 401(k)s can make a dent in the amount workers should be putting away each year, as the typical employer match is now 4.3% of pay, which is an average of about $3,540 per year, the survey found.
About 79% of employers who provide workplace savings plans offer employer contributions, according to Fidelity data.