Increased savings is the best risk management tool in preparing for retirement, according to a new white paper by Manning & Napier.
For many employees, their only retirement savings comes in the form of an employer-sponsored defined contribution plan, such as their 401(k). The hardest part for most people is deciding to participate in the plan, how much to contribute and in which funds to invest their money.
The biggest impediment to people saving for retirement is not having access to a retirement plan at work, according to the report. Recent research by the Investment Company Institute found that only 50 percent of private-sector wage and salary workers between the ages of 21 and 64 have access to a retirement plan at work.
Many employers, mainly small businesses, think it is too expensive and takes too much effort to offer such a plan.