Retirement Made Simpler
By: Source: AARP.org Date Posted: 2007-12-13 08:04:57.856336-05:00
AARP South Dakota is spreading the word to South Dakota employers that workers in the U.S. are overwhelmingly satisfied with being automatically enrolled in their companies' 401(k) plans.
"It's a win-win solution to saving for retirement," AARP South Dakota State President Patrick Gross. "Employers are pleased to know that workers who are automatically enrolled in employer-sponsored retirement plans think this is an easy way to save."
To spread the word about the benefits workers get when they are automatically signed up for retirement savings, AARP helped launch a coalition, Retirement Made Simpler,' along with the Financial Industry Regulatory Authority (FINRA) and the Retirement Security Project (RSP).
A recent Retirement Made Simpler study found that 98 percent of U.S. adults currently enrolled in an automatic 401(k) plan where they work are glad their companies help them save this way. In fact, 95 percent of these workers agree that automatic enrollment has made saving for retirement easy. Eighty-five percent agree that it has helped them start saving for retirement earlier than they had planned. According to the study, only seven percent did not participate in the retirement plan when given the chance to do so.
"AARP is committed to automatic savings programs. As the responsibility of saving for retirement falls more to the individual, it's imperative that employers and employees do all they can to enhance savings and ensure financially secure futures," said Bill Novelli, Chief Executive Officer of AARP.
In traditional 401(k)s, many workers who could start saving for their retirement never get around to signing up for the plan. By being automatically enrolled, with the option to back out of the plan, participation rates soar. "We want all South Dakota employers to know that going automatic is a great way to get people started saving for a secure retirement," said Gross.
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