Companies to Workers: Start Saving More—Or We’ll Do It for You

via Wall Street Journal

More American companies are turning to a new way of convincing employees to save more for retirement: make them do it.

Companies from Apache Corp. to Google Inc. to Credit Suisse GroupAG have boosted the percentage of worker paychecks automatically diverted to 401(k) plans well above the long-held standard of 3%.

Some are setting aside as much as 10% of their workers’ money or automatically increasing the amounts by 1% a year unless employees opt out. But not all are matching the increased savings with company contributions.

Millions of Americans aren’t putting enough money aside for retirement, despite reforms designed to bulk up nest eggs and encourage employees to sock away more.

Read the full article here

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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