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Experts in Personalized Retirement Plan Design & Administration

Only 7% of Plans Re-enroll Participants

J.P. Morgan says both sponsors and participants are missing out on a great opportunity. Simply put, most plans don’t re-enroll participants. As John Galateria, head of North America Institutional at J.P. Morgan, says: “Although some progress has been made on the savings front, advances have been far more limited in getting participant assets allocated appropriately to help get them across the retirement finish line.” Source: Plansponsor.com

Key Article Quotes:

“For plan sponsors, a re-enrollment can bolster confidence that participants are on a sensible investing path—and have a decent chance of staying on the path. Re-enrollment may also provide stronger protection from investing liability.”

“J.P. Morgan looked at the returns of a TDF over a 25-year span starting in 1990 compared to a money market fund. Even with the downturn in 2008 and the subsequent lower returns in the U.S. equity market, the TDF portfolio strongly outperformed the money market fund.”

Only 7% of plans have conducted a re-enrollment. In line with this, the firm urges plan sponsors to ensure that participants are saving enough and saving early enough—particularly as most sponsors default participants at a 3% average annual deferral rate.”

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Re-enroll participants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Re-enroll participants

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