May 11, 2009
“Auto-pilot” 401(k) plans work: 90% of auto-enrolled employees have stayed in their plans. But, since “auto-pilot” provisions are optional, many employers have not adopted them.
Employers are concerned about their liability if they offer employees access to advice or guidance.
Some providers inundate participants with useless and irrelevant information.
Some lifecycle funds had excessive allocations to equities and lost heavily in 2008, even for people very near retirement.
Irrational competition among providers of income guarantees could put workers’ security at risk in case of provider failure.
Talk to your financial advisor or call Putnam Investments at 1-800-225-1581 to find out which tax benefits best match your savings goals and what kind of asset allocation is right for you.
The views and opinions expressed are those of the Putnam Investments, are subject to change with market conditions, and are not meant as investment advice.
Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, visit the prospectus section of putnam.com, call your financial representative, or call Putnam at 1-800-225-1581. Please read the prospectus carefully before investing.
Putnam Retail Management
