In the spirit of the season, one might even think of this as ātrickingā employees to save. Plans sponsors are already using these tricks.
Tag "auto-enrollment"
Participation is one thing. Itās critical that retirement savers build on the momentum of participation and use that to increase the amount of dollars that get contributed to their article. How can plan sponsors facilitate this?
How strong an argument is there for auto-enrollment? Remember, the key feature of the 2006 Pension Protection Act was to encourage auto-enrollment. The SECURE Act has even stronger language.
So what if a few very high net savers end up with bigger retirement plans? Good for them. The point is to make it easier for more people to save more.
This week weāll be focusing on those favorite features as judged by the retirement plan professionals we interviewed. Donāt be surprised if over the next few weeks you discover that one providerās treasure is another providerās trash.
We asked retirement advisors from across the country whether they felt SECURE 2.0 had been over-hyped or represented a game changer. Hereās what they said on a few key issues.
How do you solve, for example, the problem of integration between the payroll software and the 401k recordkeeperās website?
Just as these changes come bearing down, so, too, does a need for greater hand holding. Pressures within the provider industry, however, appear to be reducing the number of available hands.