A recent report from J.P. Morgan Asset Management stresses the important role that automated plan features often play in helping participants achieve a secure retirement. Some plan sponsors are reluctant to modify their DC plans out of concern that their participants will become upset, as well as due to perceived fiduciary obstacles. What is particularly noteworthy is that the report takes it a step further and addresses this concern, finding that most participants are either neutral or would welcome help in achieving a secure retirement, with a rather small group still wishing to handle their finances themselves. The report notes that participants can always opt out of automated plan features. Larger plans appear to be leading the way in addressing the concerns, with greater levels of implementation of automated features. The report takes note of the many financial challenges that participants face and suggests that taking a holistic approach to the financial security of employees is a laudable goal for plan sponsors. Since its inception, this blog has taken the position that retirement savings does not take place in a vacuum, but rather in the midst of other financial challenges. The J.P.Morgan report appears to agree with this sentiment.
Blog Author - Ken Felsher
With over 25 years of writing, editing, and research experience. I enjoy sharing with my readers my love of working with content on a variety of subjects.
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