Mandate Automatic Enrollment
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.
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.