Comments on: How Will The Automatic Enrollment Provision Of The Pension Protection Act Help Individuals Save For Retirement? http://genxfinance.com/2006/12/06/how-will-the-automatic-enrollment-provision-of-the-pension-protection-act-help-individuals-save-for-retirement/ Helping a unique generation achieve financial independence. Sat, 21 Nov 2009 08:12:37 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Mike http://genxfinance.com/2006/12/06/how-will-the-automatic-enrollment-provision-of-the-pension-protection-act-help-individuals-save-for-retirement/#comment-245 Mike Sat, 09 Dec 2006 15:26:29 +0000 http://genxfinance.com/2006/12/06/how-will-the-automatic-enrollment-provision-of-the-pension-protection-act-help-individuals-save-for-retirement/#comment-245 This will increase participation. But I'm skeptical that there will be a significant improvement in the average person's financial position at retirement. Already, too many people cash out their 401K when changing jobs. Someone who needs to be automatically signed up in order to participate will probably not be so lazy when it comes to getting their money on leaving their jobs. Particularly if the plan requires termination of their account if less than $5K or some other amount. This will increase participation. But I’m skeptical that there will be a significant improvement in the average person’s financial position at retirement.

Already, too many people cash out their 401K when changing jobs. Someone who needs to be automatically signed up in order to participate will probably not be so lazy when it comes to getting their money on leaving their jobs. Particularly if the plan requires termination of their account if less than $5K or some other amount.

]]> By: moneysmartlife http://genxfinance.com/2006/12/06/how-will-the-automatic-enrollment-provision-of-the-pension-protection-act-help-individuals-save-for-retirement/#comment-204 moneysmartlife Wed, 06 Dec 2006 23:15:55 +0000 http://genxfinance.com/2006/12/06/how-will-the-automatic-enrollment-provision-of-the-pension-protection-act-help-individuals-save-for-retirement/#comment-204 John Brennan over at Vanguard talks about the effects of automatic enrollment over at the Chairman’s Corner on vanguard.com In their studies they found “companies that have adopted automatic enrollment in Vanguard-run 401(k) plans, employee participation rose from 73% to as much as 90”

Of course consider the source, I’d think mutual fund companies would be licking their chops over automatic enrollment because it means more money for them. Nonetheless, I think it is a GREAT idea help put people on the right investing track.

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