Morningstar, which examined potential retirement inadequacy among American workers using the Morningstar Model of US Retirement Outcomes, points to two other key findings that will have significant impact on the future of the retirement industry:

Transitioning from voluntary to automatic enrollment in DC plans, coupled with auto-escalation features of up to 15% of salary, could increase average wealth ratios by over 28%. "Intuitively, our analysis indicates that plan sponsors may want to consider adding an auto enrollment feature coupled with auto escalation to boost projected wealth at retirement," said Look.
The Automatic IRA Act of 2024, proposing automatic enrollment into IRAs with opt-out features and auto-escalation, could substantially improve retirement outcomes, with an aggregate average wealth ratio increase of 23.8%.

The Automatic IRA Act of 24, which follows the lead of nearly 20 states that have mandated programs to help workers save for retirement, was re-introduced into the House earlier this year by Rep. Richard Neal (D-MA), ranking member of the House Ways and Means Committee.

Instant Insights /

Retirement planning's evolving landscape: Next 50 years of ERISA, according to Morningstar

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