Putting 401(k)s on autopilot: Take plan design to the next level in 2023

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2022 was certainly an eventful year for retirement savers. As participants adjusted to a “new normal” amidst the COVID-19 pandemic, 2022 brought additional uncertainty, record inflation, and a market downturn. But not everything was doom and gloom. Participants continued to make meaningful progress against their retirement goals, and Washington further improved Americans’ ability to save for retirement, including the IRS’ decision to increase plan contributions and the anticipated passage of SECURE 2.0.

But more work needs to be done to make sure participants are maximizing the benefits of their retirement plans. With defined contribution plans now being the preferred retirement savings vehicles for American workers, the responsibility for the effective management of one’s retirement savings now falls on the individual. Millions of people now act as their own chief investment officer and financial planner for their retirement portfolio. And while the benefits of the shift from defined benefit to defined contribution plans cannot be overstated, research shows that more participants than ever need help saving for retirement.