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Savings for retirement, 401k annuities, asset allocation models, and autopilot investing are embraced by the public, so says Prudential’s Workplace Report, 2010. The public is in hearty support of the reform of employer pension plans.
Eighty-four percent of Americans would eagerly embrace a fresh approach to the structure of their workplace retirement plans.
The public especially wants 401k annuities and autopilot investing features, according to Prudential’s Workplace Report, 2010.
The recent economic crisis has cut savings for retirement. At the same time, Americans are anguished by having to make their own decisions about how best to manage investments in their 401k. Those challenges are piquing interest in 401k annuities and other reforms.
In fact, the survey found support for “auto-pilot” retirement programs and 401k annuities overwhelmingly positive. Both younger and older workers share this enthusiasm for a fresh approach toward savings for retirement
The following is feedback on specific characteristics of “auto-pilot” retirement programs:
Seventy-four percent favored automatic enrollment. Similarly, automatic contribution rates and periodic contribution increases rang as “positives” from 70 percent and 65 percent of survey participants respectively because such measures would strengthen savings for retirement.
Fifty-nine percent of younger workers, age 21 to 44, and 57% of workers age 45 to 64 viewed automatic asset-allocation as a “positive” proposal.
Automatic conversion of assets to a guaranteed retirement-income stream was received as a “positive” feature, for such a feature would put respondents at ease about savings for retirement. Seventy-one percent of younger workers and by 64 percent of older workers favored 401k annuities.
Approximately 61 percent of younger workers and 59 percent of older workers want a fully automated plan in savings for retirement when given a choice between the auto-pilot approach and the common “do-it-yourself” model.
According to a survey by the Investment Company Institute, the lobbying group for the mutual-fund industry, the things Americans don't want in retirement plan reform are the for "the government to remove or reduce tax incentives for retirement savings, make investment decision for them, take away their ability to invest in their defined-contribution accounts, or replace all their retirement accounts with a government bond."
A new bipartisan, national poll released prior to the mid-term election of 2010 revealed that concerns about retirement security were paramount among voters and were promising to become an important campaign issue in the upcoming midterm election.
The survey, conducted by Lake Research Partners and Public Opinion Strategies, uncovered widespread voter anxiety over being able to maintain a comfortable standard of living throughout retirement, especially in light of insufficient savings for retirement. What's more, an overwhelming majority of voters believed Congress and candidates needed to act to address the problem. Will 401k annuities be part of the answer?
Topic: Fixing the Retirement System Subtopics: The American Retirement System • What Is Retirement Age? • Pension Retirement Plan Reform • Lifetime Annuities • 401k Annuities • 401k Annuities: A Proposal from TIAA-CREF• 401k Annuities: Popular Support • Cash Balance Accounts • White House Reform • Obama Retirement Reform • Social Security Statements as a Model • Models from Australia, New Zealand, and Canada • What the Public Wants • Multi-Employer Plans • Automatic 401k • Automatic IRA • Tom Harkin • Herb Kohl • Other Advocates of Pension Reform • Opposition to Reform