The economic downturn, sometimes called the Great Recession, has caused a lot of people to ask a lot of hard questions. If I get laid off, will I be able to get another job? Should I let my home go back to the bank? Have I been living beyond my means?
Tough questions, and tough answers.
Over the past few years, automatic enrollments have grown in the marketplace. In an automatic enrollment situation, a participant is automatically enrolled in the organization’s retirement plan. That means participants start off paying into their defined contribution plan or their pension. Automatic enrollment means the employee then has the responsibility to opt out.
Pete Welsh of OneAmerica of Indianapolis, says automatic enrollments have evolved to include more elaborate features, such as auto-escalation, which automatically increases a participant’s contribution over a period of time.