Automatic enrollment is starting to generate a backlash with many critiques from analysts saying workers may run up debt to make up for the reduced take-home pay
Employers should concentrate on adopting measures that enable seamless plan-to-plan savings portability for participants, especially for employee accounts with less than $5,000.
Younger workers are closing the savings gap due to design features and qualified default investment alternatives like target-date funds or managed accounts.
Participation has increased 19% in the past five years because of design features that make it simple and quick for employees to participate in workplace retirement plans.
While experts agree automatic 401(k) features will help workers' retirement readiness, employers still remain skeptical – with many chalking their concerns up to added plan costs.
