By Hal M. Bundrick NEW YORK ( MainStreet) -- Workers in other countries have better retirement plans and benefit from automatic retirement savings features that most Americans simply can't access in their 401(k) plans. But U.S. employers say the reason they don't offer automatic enrollment (27%) or automatic contribution escalation (30%) is because of a concern that employees wouldn't approve of these features, according to J.P. Morgan research.
"The implementation of auto features is absolutely critical to helping participants achieve optimal outcomes," says Peterson. "Industry research shows that, once enrolled in a plan with auto enrollment and auto escalation, less than 10% of participants ever opt out. Imagine the impact these auto features can have on the saving habits of those employees. Providing more Americans with the experience and satisfaction of a secure retirement calls for the continued evolution of 401(k) plans with all parties contributing - participants, employers, advisors, plan providers and policymakers." --Written by Hal M. Bundrick for MainStreet