Financial Services Group Targets Employers in 401(k) Push
With its new Save 10 program, the Financial Services Roundtable hopes to show individuals the value of saving money for retirement—and employers the value of adding a 401(k) program if they don't already offer one.
The Financial Services Roundtable (FSR) has an idea for making employee dollars stretch further: Put a dime of each dollar aside for retirement.
The trade group’s new campaign, Save 10, encourages companies to share with their employees the value of saving at least 10 percent of their income for retirement. FSR CEO Tim Pawlenty, a former Minnesota governor and presidential candidate, notes that there’s a reason that the campaign is squarely focused on employers, rather than rank-and-file employees actually saving for retirement.
“One of the best ways to increase retirement savings in America is through employers,” Pawlenty said in a news release. “Save 10 will be an easy way for workers to think about saving. There are many companies helping to put their employees on the right path to savings, and Save 10 will recognize those employers in an effort to encourage others in the marketplace to follow suit.”
The group’s approach is partly defined by its research, which found that many people fail to save for retirement if their company does not offer an “auto-save” program. Companies that automatically enroll employees in retirement plans increase those saving for retirement from 64 percent to 82 percent.
FSR is bringing on a number of companies as ambassadors of the Save 10 coalition, including IBM, MasterCard, and Cargill, among others. Ultimately, Pawlenty and FSR seek to show smaller businesses that it’s easier to setup employee retirement programs than it looks.
“We’re trying to get information and resources to mid-size and smaller employers to show them it doesn’t necessarily take a huge commitment or legal headache to start a 401(k),” Pawlenty told Forbes.
If your organization is interested in joining Save 10—and follows FSR’s requirements, such as auto-enrollment into a 401(k) and auto-escalation of contributions as employees’ incomes rise—you can sign up on the Save 10 website.