9 improvements Congress should make to 401(k)s

We have a retirement savings crisis in this country with the majority of American workers not saving nearly enough to retire. As Congress considers changing our private retirement system, lawmakers should evaluate the suggestions outlined below. I have ranked these recommendations from one to 10 (with 10 being a major impact) based on how I feel the change affects employee retirement readiness.

Auto-enrollment, auto-escalation and auto-reenrollment work. Require all 401(k) plans to adopt the full suite of “auto” features beginning with auto-enrollment at 6%, annual auto-escalation of participant contributions by 1% up to a 12% maximum, and annual auto-reenrollment of every employee not in the plan. Auto-reenrollment ensures plan participation rates in the low 90% range.