The U.K.ís Ambitious New Retirement Savings Initiativetirsdag, 18 mars 2014
The United Kingdom is rolling out a low-cost retirement system for workers who lack pension coverage.
The new system has three core elements:
Employers auto-enroll their workers at a 4-percent contribution rate, matched by the employer and government combined.
A new non-profit provides the infrastructure to keep costs low.
The plans’ target date funds start young workers with low-risk investments to avoid losses that could discourage saving.
The U.S.’s new “myRA” program includes two similar design features – low-risk investments and government infrastructure – but it lacks auto-enrollment.