Holdouts lose the tax advantages and compounding effect of regular saving. They also might lose matching company contributions.
Procrastination is a powerful force among nonsavers, analysts say.
Whatever the reason, companies with low participation rates could be forced to limit benefits for highly paid employees under government antidiscrimination tests. Some employers are not waiting for workers to register for retirement plans. They automatically enroll new employees, and in some cases veterans, by diverting 3 percent of pay, in a typical example, into a basic retirement savings program. Employees can then elect to save more or choose riskier investments. An employee's decision is not whether to join but whether to opt out.