Auto-Enrollment Costs Challenge Advisors

November 16, 2009

PALM BEACH, Fla. - Most 401(k) and other defined contribution plan administrators and sponsors like the automatic enrollment feature in the retirement savings plans they manage because it gets more people saving earlier, but the involuntary nature of these plans does not diminish the burdens they place on administrators to run them. While many of these reluctant participants may not be of the saving and investing mindset when they join the plan, the hope is that auto enrollment can help steer them on the right path at an early age. Participants' interest in retirement generally increases the closer they get to their retirement date, and auto enrollment can give investors a critical head start.

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