For your benefit

Automatic enrollment seen boosting retirement readiness

More than half the Baby Boomers and Generation Xers are expected to have sufficient retirement income to cover basic expenses and uninsured healthcare costs, according to projections by the Employee Benefit Research Institute (EBRI). But that leaves 44 percent of those workers projected to be at risk of running short of money in retirement. The latest projections are five to eight percentage points better than what was found in 2003. The EBRI credits the improvement to increased adoption of automatic enrollment plan design features by 401(k) plan sponsors. Lower-income households remain at greatest risk of insufficient retirement income, according to the projections. At retirement, 87 percent of lowest-income households are projected to be at risk, compared with 13 percent of highest-income households.