US - Employees have shown unanimous support for being automatically enrolled in their companies' 401(k) plans, a new study has shown.
The Retirement Made Simpler study, conducted by Harris Interactive, found 98% of US adults currently enrolled in an automatic 401(k) plan agreed they were glad their company offered this savings vehicle, with nearly four in five expressing strong agreement. In addition, of those automatically enrolled, only 7% opted out of the plan.
Retirement Made Simpler, a coalition formed by the Financial Services Regulatory Authority (FINRA), the Retirement Security Project and AARP, an organisation representing the interests of over-50s, released the study to coincide with a launch of a campaign on 401(k).
Mary Schapiro, chief executive of FINRA, said many employees had been concerned their workers would not like automatic 401(k)s, and were reluctant to adopt them.
She said: “These results overwhelmingly dispel that myth, making automatic 401(k) adoption a win-win for employers and employees.
“The Retirement Made Simpler coalition hopes these positive employee experiences with automatic 401(k)s will be the catalyst employers need to implement these plans in their own companies.”
The study also found 95% of workers automatically enrolled in the plans agreed it had made saving for retirement easy, and 85% said it had helped them start saving for retirement earlier than they had planned.
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