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Why automatic enrollment in 401(k)s might not always be for the best

Started by Steve @ bripblap · 10 months ago

In August 2006, Congress passed the Pension Protection Act of 2006, which included a provision to allow automated enrollment in 401(k) plans (as well as similar plans like 403(b) and 457 plans). With nearly 30% of employees failing to sign up in 401(k) plans, many Americans a ... Continue reading »

3 comments

  • SavingDiva

    1 year ago

    I guess the government is hoping to catch the lazy people that forget to sign up for the retirement plan with this program. I think employers should just do a better job of educating employees on their retirement benefits. I also think that people should educate themselves! However, I doubt that will happen.
    reply
  • FourPillars

    1 year ago

    I couldn't leave a comment on the right post but I loved the "man on the moon" post.

    We used to steal larger monitors from cubicles of people who left the company and of course were always afraid we'd be caught.

    Mike
    reply
  • Susan Ciconte

    1 year ago

    I have some real issues with employers automatically signing up employees for the company's administered 401K plans. 401K is based on the stock market. And, frankly, that just doesn't sit very well with me. I don't like losing money, and frankly, just don't gamble. So, I live more cheaply and economically. Employers these days, especially in corporate America, don't, as you say, want to be responsible for someone's retirement (like it used to be in the past with good employers who provided defined benefit contributions). Instead, they need to pay their CEOs $50 billion a year. For those reasons, I opt out of these automatic enrollment plans, and demand that the employer opt me out. No employer is going to tell me where and how I am to invest my money, just like no stock broker is going to call me and tell me where I should invest $5000, only to lose $2500 of it within three months. If I am going to lose money, it will be at my hand and no one else's.
    reply

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