There are a lot of easy things that employers could do to improve their 401(k) plans—and the retirement security of their workers. They just need prodding. “We’re encouraging workers to speak up and employers to reach out and talk to their people,” says Catherine Collinson, president of the Transamerica Center for Retirement Studies, a non-profit funded by Transamerica, a subsidiary of financial giant Aegon .
In a new report, Collinson features five things employers can do immediately. Why stop there? I’ve added another five. These are all action items within the reach of employers now. They don’t require regulatory reform or new laws. Many employers are offering some of these features already, but many are not. Large employers tend to be the leaders, and micro employers tend to be the laggards, Collinson says. But pretty much every employer can find some room for improvement.
Here are 10 action items.
- Supercharge automatic enrollment.
- Offer advisory services and target-date funds.
- Add a Roth 401(k) option.
- Expand eligibility to part-time workers.
- Start a dialogue with employees.
- Chip in a bigger match.
- Provide lifetime income illustrations.
- Add longevity annuities.
- Allow in-plan Roth conversions.
- Add a traditional aftertax option.
For more information on these 10 401(k)s changes employers should make now, view the full Forbes article here.
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