6/29/2015 – The downside of automatic 401(k) enrollment (CNBC)

Jun 30, 2015 Comments Off by

Nearly a third of Americans age 55 and over have no retirement savings, and defined benefit pension plans are going the way of the dinosaur. So you’d think that employers would be doing a great thing when they automatically enroll employees in 401(k) plans. Not exactly. Auto enrollment, as the practice is known, does increase employee participation in retirement plans. A recent study by Towers Watson found that the share of employers with more than 80 percent participation rates in defined contribution plans increased from 50 percent in 2010 to 64 percent in 2014 as the share of companies offering automatic enrollment rose from 57 percent to 68 percent.

Read the full article in CNBC.

Financial Landing 2015

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