What are the most likely features employers will add to their defined contribution plans in 2006? This survey by Hewitt–“Hot Topics in Retirement for 2006“–lists the following:
- Automatic enrollment
- Automatic rebalancing*
- Online third party investment advisory services
- Automatic contribution escalation**
- Roth 401(k) contributions
- Managed accounts
- Annuities as a form of payment option; and
- 401(k) disability insurance.
* Automatic rebalancing – the ability of employees to have their investment mix rebalanced periodically to a target mix of investments that they select.
**Automatic contribution escalation – the ability of employees to have their contributions to a plan automatically increased over time.