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.
ABOUT PLEXUS FINANCIAL SERVICES, LLC
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.”