What’s the best strategy for potential savers who know they should take advantage of their employer’s 401(k) offerings, but can’t quite get their act together? Increasingly, automatic enrollment an auto-escalation plans have been helping plan sponsors boost participation rates and more seamlessly fulfill their retirement responsibilities – but it’s not the easiest endeavor in the world.
Speaking Sunday at ASPPA’s annual conference in Washington, D.C., James J. McKinney, CPC, of Retirement Strategies Inc. of Augusta, Ga., pointed out many of the trials and tribulations of the world of automatic enrollment in 401(k) plans.
“But we were also given a prescription for target-date funds and some risk-based models. QDIAs have gone from principal stable-value funds to something with more weighted components as a default.”