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.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers