Friday, June 26, 2015


The WSJ covers an EBRI analysis of auto-enrollment policies and whether such policies are enough to solve the retirement crisis.  The answer?  Not really.  Not if the auto savings rate is 3%.

Key point:
EBRI, a nonpartisan think tank, modeled savings behavior by age group and employer size and found that an automatic 3% deduction without the possibility of opting out would reduce the total retirement savings shortfall for households headed by someone ages 35 to 64 by 6.5%, from $4.13 trillion to $3.86 trillion.