401(k)s have become the dominant program for retirement savings for workers, Paul Schott Stevens, president of the Investment Company Institute, said this week. Because of that, government and private employers need to improve the system to get more employees saving for their retirement as pensions disappear.
“More and more American workers will embrace the opportunity to save for their retirement,” he said, adding that the Pension Protection Act of 2006 makes it easy for employers to automatically enroll employees into 401(k) plans.
What used to be a government obligation is transforming into an employer moral obligation to help employees save for retirement. About 56 percent of employers don’t offer plans and about 30 percent of workers that have access to one don’t use it. Those numbers need to change for the better of society in the future.
By offering 401(k)s, business owners can also greatly improve their chances of building a wealthy retirement. Working with an advisor at Rainsberger Wealth Advisors, an employer can help develop a program that meets both employer and employee goals and make uncertain futures more certain.
