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CNN Live At Daybreak
Stashing Cash: More Workers Enroll in 401(k) Plans Immediately
Aired November 25, 2003 - 06:48 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little 'Business Buzz' right now. There's a lot of things to worry about when you change jobs, but your nest egg should not be one of them.
Carrie Lee has more on that live from the Nasdaq market site.
What's the secret?
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Well, Carol, more and more companies becoming more generous in terms of waiting periods for their 401(k) plans. Now companies have traditionally made new employees wait a year, maybe even longer than that, to contribute to these plans. But now, people or companies are really cutting back on that time. So the result here has been that workers who move around a lot have paid a big penalty when it comes to building their nest egg. Now they are no longer paying that penalty.
According to Hewitt Associates, 43 percent of big companies now allow new employees to enroll in the 401(k) plans they offer right away. And that's up from 35 percent in 2001, and that's a percentage that's expected to increase. Even companies that still do require a waiting period have relaxed their rules. Just 19 percent of companies today have waiting periods of six months or longer. This all according to "The Wall Street Journal."
Carol, it's all good news for people. Obviously this is pretax money you are putting into these plans. The key, though, is getting people to participate. Only 73 percent of people in this country do. It's always a good idea to sock money away into these plans. Even a little bit each week can mean big savings for retirement down the road.
Back to you.
COSTELLO: Yes, make it your New Year's resolution if you are not involved in your company's 401(k), because you can't beat it.
LEE: You can't beat it. You get the money out. It's almost out of sight out of mind. You put it away, you bank it and that's it, you really don't have to think about it very much.
COSTELLO: Exactly. Carrie Lee live from the Nasdaq market site.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Immediately>
Aired November 25, 2003 - 06:48 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little 'Business Buzz' right now. There's a lot of things to worry about when you change jobs, but your nest egg should not be one of them.
Carrie Lee has more on that live from the Nasdaq market site.
What's the secret?
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Well, Carol, more and more companies becoming more generous in terms of waiting periods for their 401(k) plans. Now companies have traditionally made new employees wait a year, maybe even longer than that, to contribute to these plans. But now, people or companies are really cutting back on that time. So the result here has been that workers who move around a lot have paid a big penalty when it comes to building their nest egg. Now they are no longer paying that penalty.
According to Hewitt Associates, 43 percent of big companies now allow new employees to enroll in the 401(k) plans they offer right away. And that's up from 35 percent in 2001, and that's a percentage that's expected to increase. Even companies that still do require a waiting period have relaxed their rules. Just 19 percent of companies today have waiting periods of six months or longer. This all according to "The Wall Street Journal."
Carol, it's all good news for people. Obviously this is pretax money you are putting into these plans. The key, though, is getting people to participate. Only 73 percent of people in this country do. It's always a good idea to sock money away into these plans. Even a little bit each week can mean big savings for retirement down the road.
Back to you.
COSTELLO: Yes, make it your New Year's resolution if you are not involved in your company's 401(k), because you can't beat it.
LEE: You can't beat it. You get the money out. It's almost out of sight out of mind. You put it away, you bank it and that's it, you really don't have to think about it very much.
COSTELLO: Exactly. Carrie Lee live from the Nasdaq market site.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Immediately>
