The bad news: account balances for the median 401(k) of a person approaching retirement (65+) remains very low.
Higher returns, participation rates, savings ratesWhy do we care so much about 401(k) plans?
Thanks to a change in the law several years ago, a record-high 59% of plans offered automatic enrollment in 401(k) plans.
By switching to automatic enrollment, participants were automatically enrolled and had to "opt-out" if they did not want to participate.
Plans with automatic enrollment had a 94% participation rate, compared with 67% for voluntary enrollment plans.
Persons:
John James
Organizations:
Vanguard, Fidelity, Social Security, Institutional Investor Group, Social, Security, Pension Rights Center