NEW YORK, Jan. 12 (UPI) -- Beginning this year 401(k) statements will include bits of investment advice such as diversify your portfolio, a report from USA Today said.
Also suggesting that you avoid loading up on your company's stock, a stark reminder of the Enron collapse, the guidance is part of a little noticed provision of the new pension law, USA Today reported. Another provision calls for quarterly 401(k) statements.
The change comes as more employers are shifting to 401(k) plans and leaving the responsibility of retirement saving to workers. Some 36 percent of the largest U.S. companies offered no traditional pension in 2005, only a 401(k) plan.
The new pension law also makes it easier for employers to advise workers on investments. In the past, some were reluctant to do so for fear of being sued if the suggested investment failed.
