Originally Posted by stoutboy
Thanks! I think that 65 rating is too low. It dings TSP for a low participation rate, but I believe participation in TSP is mandatory--every fed employee gets at least 1 percent fed match, and the gov is now auto-enrolling all new hires.
If the TSP does have a weakness, it is that it does not have an emerging markets index.
One surprise--not just for TSP, but for numerous other plans I looked at, are the low average account balances.
Ours was in the mid-sixties last year as I remember it. This year we're @71. The participation has improved over that time apparently.
The low participation rates and average 401k balances we hear about in the news would seem to support Texas Proud's argument regarding choice in this thread: The Ben Stein Pass/Fail Test
however (and not to beat a dead horse) there are a plethora of circumstances beyond simple choice that can and do put a retirement savings agenda out of reach for many.
I absolutely think the default enrollment would help though.