Good research needs to be shared. Such is the case with the following study recently released by American Century Investments. Seventy-three percent of plan participants said they could have afforded to save more and would have done so if they just knew one key number -- the amount they needed for retirement. Over one in four participants, ages 25-54, would give themselves a "D" or an "F" in putting money away for the future.
Furthermore, nearly seven in 10 support automatic enrollment at a 6 percent starting contribution rate and more than eight in 10 participants would have favored at least a moderate annual increase in their personal retirement savings of 1% a year until a savings rate of 10% was achieved.
Research like this encourages companies that sponsor 401(k) plans to take bold steps. Add auto-enrollment, auto-increase, and auto-invest options. A few participants will object but the vast majority will thank you and you will have the calm assurance of knowing you did the right thing.
The ERISA specialists at Retirement Planning Services can help clients implement these features, for when done properly, the fiduciary liability is actually reduced.
Read the full report here:
