New Vanguard data shows that 72% of plan sponsors allowed for immediate eligibility of retirement saving deferrals in 2021, which is an increase over the 58% in 2012, according to own research.
Although not every Vanguard plan permits immediate eligibility for employee deferrals, 86% of plans allow for entry within three months of employment, according to the data.
With a tight labor market, I think immediate eligibility is a great recruitment tool. I was an employee once too and eligibility requirements for deferrals that were more than 3 months were a big minus.
