Nowadays, everything seems to be automated... why not optimize our retirement savings the same way? As you'll read, some folks in DC are working to do just that. This issue's also packed with new stats and advice for plan sponsors. Check it out 🌟

📚 This Week in Retirement

1. ​51% of workers anticipated that their financial stress would be the same or worse at the beginning of 2022 than in 2021, according to a new poll.
2. $1.4 million in financial wellness program grants was awarded to public sector employers last year. The employers recommend "[involving] employees in the design of the program to help ensure buy-in."​
3. According to Fidelity, the average 401(k) balance is at a record high, with 40% of savers increasing retirement contributions last year.

💡 Spotlight on... Auto Re-enrollment

Automatic enrollment into employer-sponsored retirement accounts has changed the way we save. Championed by Nobel-Prize-winning economist Richard Thaler, it's helped us add $29.6 BILLION to our retirement accounts over the past decade. Now, national legislators want to push the opt-in policy one step further, by automatically RE-enrolling employees who previously opted out.

Introduced in the House and Senate last Friday, the Auto Re-Enroll Act of 2022 encourages employers to target non-participants every 1 to 3 years, automatically enrolling them in their 401(k) or other DC plan unless they opt out each time.

"Far too many workers are missing out on money that can go a long way toward financial stability in their retirement years by failing to participate in their employer matching contribution," bill co-sponsor Sen. Tim Kaine commented. "This common-sense legislation will build on the success of auto-enrollment and help put families [...] across the nation on a safer financial footing for the future." (The bill's other sponsor, Sen. Kathy Manning, is pictured above.)

​Out of the 68% of private-sector workers with access to a DC plan, only 51% participate. Why? While auto-enrollment and financial education have certainly helped, it's simply too easy for employees to disregard such a long-term investment vehicle. Some plan sponsors offer helplines and online assistance, but usage rates for these services remain low — 35% in some studies.

“Re-enrollment is becoming increasingly more popular [than these other efforts] because investment education has not worked as well as was initially hoped," Bruce Ashton and Fred Reish write in their study on the effects of re-enrollment. "And, even with one-on-one meetings, the process has not affected the large number of participants who are commonly impacted by re-enrollment."

Re-enrollment seems to be a unique solution, and providers have taken notice. In 2013 it was employed in 43% of plans; by 2019, usage had shot up to 55%, according to JP Morgan. This new bill will increase its reach even further, hopefully helping Americans with employer-sponsored plans save more and more often.

We here at Better Benefits have been focusing more on retirement content for a hot second now, and we want to know what you think! Take this quick survey to help us help you stay informed and engaged — your input means the world to us!

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