Why 401(k) Auto-Features are a Blessing and a Curse
In this brief interview, John Sullivan speaks with Sarah Keibler at a Nuveen Retirement Outcomes Leadership Committee meeting in Chicago. The conversation centers around essential components of effective 401(k) plan design and improving participant outcomes.
Keibler emphasizes that a well-designed retirement plan must provide maximum flexibility to participants. Key features include early entry into the plan, the ability to roll over previous balances, and ensuring that individuals can engage with the plan in a way that benefits them personally.
They also discuss automatic features, such as auto-enrollment, which help increase plan participation but come with administrative challenges for plan sponsors. Keibler cautions that employers must fully understand these features, particularly how employees can access or withdraw funds, and ensure they provide proper notifications to avoid confusion or dissatisfaction.
When asked how to benchmark success, Keibler stresses that the ultimate measure is whether participants can actually retire using their plan. This means not just contributing, but understanding how and when to access funds and whether the accumulated balance is sufficient for retirement.
She critiques the current focus on plan entry over retirement readiness, suggesting that more education is needed on how participants can responsibly draw down their savings.
Keibler concludes by giving an overview of Alliant Retirement Consulting, which has a national presence and regional offices in New York, Houston, Atlanta, and Seattle.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.
