Notice of Monthly Income May Mean More Money for 401(k) Participants

According to a recent study by the Center for RetirementResearch at Boston College, participants in 401(k) plans are more likely tosave money when they know how much monthly income their retirement accountgenerates. 

Currently, 401(k) plans mustnotify participants of their account balances on quarterly statements.  But this study, as well as previous researchby the Principal Financial Group, demonstrates that an estimate of monthlyretirement income can increase savings.

See Anne Tergesen,A Scare Tactic Could Boost Savings,Market Watch, Apr. 9, 2013.