Of the 1.6 million people who have been automatically enrolled in workplace pension plans in the United Kingdom, just 9% have opted out.
Among the touted benefits of auto-enrollment features in a capital accumulation plan (CAP) is the assumption—and hope (fingers crossed)—that plan members who contribute to their plans sooner will invest over longer periods and reap the benefits from tax-free compounding of investment returns on their contributions. But while there’s no definitive way to gauge whether auto-enrollment […]
Disappointingly few Canadians are participating in their workplace retirement savings plans. Those who do aren’t paying much attention. So capital accumulation plan (CAP) sponsors are constantly searching for ways that inspire employees to save enough for retirement. One potential solution involves signing employees up by default.
Probably the most significant change in the DC landscape over the past five years is the realization that, instead of solely focusing on educating DC plan members to become wise investors, plan sponsors need to consider how best to deal with the significant percentage of members who have at least one of the following traits:
Auto features in retirement plans can get employers to their group retirement plan goals faster while better preparing their employees for retirement, says new U.S. research.
People don’t consciously control a lot of their behaviour. For plan sponsors, this is frustrating, because getting employees engaged in benefits and retirement plans is all about behaviour change.
Governments around the globe will need to gradually increase their retirement ages in order to keep their pension systems sustainable, according to a new report from the Organisation for Economic Co-operation and Development (OECD).
During this period of reform, there’s been a lot of discussion about how to improve pension coverage across Canada, and how to keep the current system sustainable.
It appears CAP investors are keen for target date funds (TDFs). According to Vanguard’s Target-Date Fund Adoption in 2011 report, nearly one in four 401(k) plan participants invest solely in TDFs—marking a six-fold increase over the past five years.
Employees under age 35 are likely to be more dependent on DC plans for their retirement savings than previous generations—but less attention is being paid to them than on their boomer counterparts, according to a U.S.-based study by Northern Trust.