The impact of auto-portability was particularly impressive among the lowest income quartile. (Photo: Shutterstock)
The Employee Benefits Research Institute (EBRI) has added yet another study to a growing body of research supporting the substantial retirement savings public policy benefits of auto-portability.
EBRI Issue Brief no. 473, by research director Jack VanDerhei, Ph.D., compared the outcomes of participants in 401(k) defined contribution plans with auto-enrollment against defined benefit (DB) plans.
While the primary objective of EBRI's research was to address a growing public policy concern over the relative decline of DB plans, this study also evaluated the significant, positive impact that auto-portability could have upon the retirement security of Americans who participate in 401(k) plans.
Comparing DB vs. DC plans with auto-enrollment
In the latest analysis, EBRI specifically examined the amount of retirement income that could be produced by auto-enrollment 401(k) plans and then determined the final-average DB accrual rate required to generate an equivalent retirement income.
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