Ironically, for all the ink sacrificed on 401(k) fee exposés and 401(k) investment advice, most experts agree the biggest problem with retirement savings is “savings.” It doesn't matter what fees you pay if you don't save enough. It doesn't matter what investments you choose if you don't save enough.
The 401(k) opportunity gave everyone an equal chance to take responsibility for ensuring they can live their own desired retirement lifestyle. The world is filled with 401(k) millionaires. They saved enough. But the news is also filled with heart-breaking stories of folks who, though nearing retirement age, can't retire at their desired lifestyle. They didn't save enough.
Executing a good savings strategy requires discipline. This means 401(k) plan sponsors needs to pay attention to psychology as much—if not more—than accounting numbers. Fortunately, our academic thought leaders have been exploring this issue for some time and have come up with several good ideas plan sponsors can implement at little to no cost. Here's a review of a few:
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