Whether it's because of laziness or neglect, enrollee inertia has long been a problem in the retirement plan world. But employers that try the re-enrollment route are having better luck addressing the problem.
J.P. Morgan Asset Management has produced a white paper saying sponsors that have done so have seen a 55 percent to 85 percent adoption rate of target-date funds.
By contrast, sponsors that merely add TDF options to investment menus without re-enrolling participants are seeing an adoption rate of just 5 percent, it said.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
