Tag: auto-enrollment
Auto-enrollment without auto-escalation of default contribution rate is part of the problem. One of my favorite publications just came out: “How America Saves.” This annual report from Vanguard summarizes the statistics for the defined contribution plans that the company administers. Vanguard tends to administer larger plans, so the plans are better designed than average and…
The brief’s key findings are: State auto-IRA programs for private sector workers are intended to pay for themselves. This goal is achievable in the long run, but auto-IRAs will incur losses initially. The keys to financial self-sufficiency are to: keep per-account costs low; set meaningful participant contribution rates; and charge higher fees initially or finance start-u…
