retirement

Helping employees save for retirement

Bankrate Audio » Helping Employees Save For Retirement

Listen to audio

Editor's note: This is a transcript of the audio file.

Behavioral finance researchers have come up with some ways to get around procrastination and inertia to help workers maximize their retirement plans without even trying.

I'm Sheyna Steiner with the Bankrate.com Personal Finance Minute.

One way plan administrators get workers to save is with automatic enrollment -- that way people have to opt out rather than taking the step of opting in. Before automatic enrollment only about 30 to 40 percent of workers offered 401(k) plans would opt in, after it's instituted, plan participation is typically around 90 to 95 percent.

But that's not all, plan administrators can also choose default investment options that could hypothetically be good enough to get you to retirement. It's a bit of a double edged sword in that once participants are in the default investments; they're more reluctant to choose other options.

With employee agreement, employers can also boost worker contributions every year to maximize savings.

In the future, the withdrawal process at retirement could also be automated.

For more on this and other retirement and investing issues, visit Bankrate.com, I'm Sheyna Steiner.

advertisement

Show Bankrate's community sharing policy
          Connect with us
MORTGAGE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed 4.07%  0.21 4.28%
15 year fixed 3.18%  0.08 3.26%
5/1 ARM 3.36%  0.07 3.43%
 
View Rates in your area Next
Product Rate Change Last week
30K FICO-based HELOC 4.36% --0.00 4.36%
50K FICO-based HELOC 4.06% --0.00 4.06%
100K FICO-based HELOC 3.91% --0.00 3.91%
 
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.79% --0.00 2.79%
48 month used car loan 2.98% --0.00 2.98%
60 month new car loan 3.23% --0.00 3.23%
 
View Rates in your area Next
Product Rate Change Last week
1 Year CD 0.94%  0.01 0.93%
2 Year CD 1.13% --0.00 1.13%
5 Year CD 1.76%  0.00 1.76%
 
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.77%  0.06 15.71%
Cash Back Cards 16.48%  0.07 16.41%
Low Interest Cards 10.96%  0.10 10.86%
 
Next
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jennie Phipps

Work less — ‘It’s a better life’

Retirement actuary Steve Vernon says working less while delaying Social Security is the best way to retire.  ... Read more

advertisement
Partner Center
advertisement

Connect with us