What's silent, painless and healthy? The answer: auto-enrollment in an employer-sponsored retirement plan, such as a 401(k).
Most of all, automatic enrollment is simple, as Plexus Financial Services Practice Leader Allison Winge told Leader's Edge magazine for a recent informative, wide-ranging feature on the state of corporate retirement advisory.
"We're seeing a lot more plans adopt that," Winge said. "I think that will continue as probably the norm."
Winge is also a proponent of auto-escalation, where firms automatically increase the retirement plan contribution amount for employees, with PFS suggesting an opening contribution of at least six percent, with one percent annual increases.
"That's really getting people into the plan and really getting their money to work," Winge said. "We're finding that most employees are not opting out."
To check out the entire Leader's Edge story, click here. It's a wonderfully detailed look at how plan advisors, sponsors and participants must manage the challenges of retirement saving. And for more on Plexus Financial Services, visit their website at PlexusFs.com or by calling 847-307-6222.
Disclaimer: Plexus Financial Services does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable; we cannot assure the accuracy or completeness of these materials.
Plexus Financial Services is located at 21805 Field Parkway, Suite 300, Deer Park, Illinois 60010. The company phone number is 847-307-6222.
Securities and advisory services offered through Plexus Financial Services LLC, member FINRA/ SIPC, a registered investment adviser.