Pension Bill Expected to Pump $2 Trillion into Funds

The financial services industry is likely to get a huge boost from the recent pension legislation; expects predict almost $2 trillion in new money will flow into U.S. retirement funds, Bloomberg reports.

U.S. companies 401 (k) accounts currently contain $3.2 trillion, according to the Retirement Security Project. Large fund companies, such as Vanguard Group and Fidelity Investments, as well as investment banks, brokerages firms and insurance companies, will all benefit from the influx of money.

President George W. Bush has said he will sign the legislation, which will allow employers to automatically enroll workers in 401 (k) plans, makes permanent higher contribution limits for 401 (k) s and Individual Retirement Accounts, and allows financial service companies to advise workers and companies on how to invest their retirement funds.