Financial professionals should promote automatic 401(k) plan enrollment and other strategies to save Americans from a looming retirement income shortfall.
Norman Malo, president National Financial Services L.L.C., delivered that message here at the annual meeting of LIMRA International, Windsor, Conn.
National Financial is a division of Fidelity Investments, Boston, that sells clearing services, technology services and other services to broker-dealers, investment firms and other clients.
Malo cited a forecast from the Employee Benefits Research Institute, Washington, suggesting that Americans might have $400 billion less retirement income than they need from 2020 to 2030.
“We need action now, and that suits me fine,” Malo said. “The next few years are exceptionally exciting for everyone in financial services. We will be bringing boomers into to a safe landing in retirement.”
The financial services industry can help steer defined-contribution plan participants around typical investor mistakes, such as panic selling near the bottom of a market or buying at a stock’s high, Malo said.