Retirement Made Simpler

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AARP Wyoming is spreading the word to Wyoming 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," said AARP Wyoming State Director Rita Inoway. "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 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. Research also suggests that employer contributions and enhancements to 401(k)s typically offer a larger, positive return on investment (ROI) that can sometimes exceed the ROI for spending on other key reward elements, such as pay and bonuses. The high ROI is likely due to employees increasing focus on retirement savings and security. It also helps reduce turnover and training costs by improving productivity. "We want all Wyoming employers to know that going automatic is a great way to get people started saving for a secure retirement," said Inoway.

AARP Wyoming has partnered with the University of Wyoming Cooperative Extension Service in spreading the word about automatic 401(k) and will offer a brown bag series on saving for your future to employers and workers of the Cheyenne area.  For dates or more information, contact the AARP Wyoming office toll-free at 1-866-663-3290.

Retirement Made Simpler
http://www.retirementmadesimpler.org/