Recently a new bill made it easier for employers to automatically enroll their employees in 401k's mostly by shielding them from lawsuits if the investments don't perform well. According to marketplace
[Harvard retirement scholar Brigitte Mandrian] expects more employers will migrate to automatic 401k enrollment. But slowly, cuz it's pricey. More employee savings means more matching funds from their bosses.This is the weird part. Employers are doing something which costs them money, and, though it helps their employees, it only helps the employees who didn't really care about the benefit they're getting. The people who are excited about getting 401k's are probably the ones who'll enroll even if it's not the default. Could it be that the companies really do care about the welfare of their employees? Explaining Safelite Auto Glass's decision to automatically sign up their employees to invest 2% of their pay (matched by the company), Brenda Downing says:
We had a significant number of associates not saving at all. We were concerned they weren't going to be OK at the time they retired.Is corporate benevolence really the only answer here? This is making my head hurt.