Auto-Enrollment in 401(k) Plans

Auto-Enrollment in 401(k) Plans

https://danariely.com/2008/05/05/3-main-lessons-of-psychology/

Above is a blog that I thought very relevant to today’s post: the case for auto-enrollment in 401(k) plans. We all know the need to save for retirement — just as we all know how great our potential to put things off. The post above it worthy of three minutes of your time.

People don’t save money for retirement for two keys reasons: first, the amount needed to retire successfully is overwhelming — too often, people subconsciously decide they cannot do anything about it; second, when given a choice of ‘yes’, ‘no’, or ‘I’ll decide later…’, people will opt for putting it off indefinitely.

There is a third reason people don’t save… but that will be the subject of a later post.

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