Should companies in Barrington automatically increase the individual contribution rate for 401(k) plans as a way to help employees increase their retirement savings? It’s an approach some firms are taking. And there’s research that shows employees are in favor of such a plan.
Via Pensions & Investments magazine, 86 percent of participants enrolled in a plan that automatically increased their contributions on an annual basis elected to stay in the plan, according to a Principal Financial Group study.
Other evidence suggests 401(k) participants like the idea of auto-escalation. Via the Society for Human Resource Management, more than half of 7,545 people surveyed in a three-month span in 2013 by financial services/insurance firm One America said they would be agreeable to a plan that automatically increased their contribution.
Automatic increases can help Barrington-area employees build a retirement nest egg, and for plan participants who have a hard time saving, automatically contributing before the money gets put into the budget may be a reliable course of action for many.
Want to learn more about auto-escalation and other corporate retirement plan strategies? Plexus Financial Services, LLC can help. Contact us at 847-307-6222 or via PlexusFs.com.
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Plexus Financial Services is located at 21805 West Field Parkway, Suite 300, Deer Park, IL 60010. Securities and advisory services offered through Plexus Financial Services, LLC. Member FINRA/SIPC, a Registered Investment Adviser.
Plexus Financial Services is a CEFEX-certified organization. CEFEX, the Centre for Fiduciary Excellence, has certified Plexus Financial Services to the Fiduciary 360 (fi360) standard, “Prudent Practices for Investment Advisors.”
