Since 2001, more defined contribution plans are adopting automatic enrollment and many are also implementing stronger savings rate defaults. Over 20% more people are saving in these plans. Meanwhile, the total savings rate has stayed the same.
As the baby boomers retire, there is growing concern about the potential financial exploitation of seniors. Early in 2017, the SEC approved rules enabling firms to obtain emergency contact information when opening an account.
The mischief and merriment we associate with Thing One and Thing Two offer a lesson for retirement plan sponsors: People counting on defined contribution plans need to get only two things right.
Target-date funds and managed accounts are reshaping the retirement landscape. And a critical factor in their success is the fact that participants tend to stick with these strategies after they’ve been adopted.