Former U.S. Senator and Democratic vice presidential nominee John Edwards has partnered with former Congressman and Republican vice presidential nominee Jack Kemp to launch a national "Savers Society" campaign calling on companies to offer automatic 401(k) options.
The campaign, in partnership with the
Only 13% of recently hired workers earning $20,000 or less participate in their 401(k), but when they are automatically enrolled in the plan, participation rates reach 80%.
"This is an important step to ensure that seniors don't fall into poverty once they retire," Edwards said. "The auto 401(k) is a simple way for corporations to make it easier for their employees to assume this responsibility."
Automatic enrollment is gaining traction among large companies; 30% of 401(k) plans with 5,000 participants or more now have such a function.
