7 misconceptions employers have about retirement auto features

The concern about upsetting employees is the most common objection to adding auto features to a retirement plan, says Stephen Moser, a consultant with RetireAdvisers Services. But, he says, according to a Harris Poll conducted in 2007, 98% of those currently automatically enrolled agreed with the statement, “You are glad your company offers automatic enrollment.”

Adding auto features to an employer’s plan may not be as expensive as they think, Moser says. Most of an employer’s higher paid employees are already in the plan and contributing aggressively, so it’s mostly the lower-paid employees who will be auto-enrolled. As a result, the match will be based on percentages of those lower salaries only, he suggests.