Workers May Get Automatic Retirement Accounts

Democrats want all employees enrolled
By John Johnson,  Newser Staff
Posted Jul 13, 2010 4:58 PM CDT
Workers May Get Automatic Retirement Accounts
A proposal would make retirement savings automatic unless people opted out.   (Shutterstock)

(Newser) – Democrats plan to introduce legislation that would automatically enroll private-sector workers in retirement savings accounts, the Hill reports. The measure, being heavily pushed by the AARP, would apply to those whose employers don't offer 401k accounts. Workers would be able to opt out of the plan, whose backers don't expect it to be approved until next year at the earliest, notes Investment News.

“There’s this inertia that keeps people from taking advantage of saving opportunities,” said an AARP official. “It’s all sort of foundationally related to that, how people choose to save.”?? The measure would require employers who have at least 10 employees to offer the savings option through payroll deductions, a provision likely to draw flak from small-business owners as another bureaucratic hassle, notes the Hill.
(Read more retirement savings stories.)

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