1. Will generous 401(k) contributions attract and retain top talent? Why or why not?

2. During the Great recession (2007–2009) many employers suspended or reduced their contributions to 401(k) plans. Should a firm's contributions be tied to its financial results each year?

3. Will automatic enrollment of all new hires and current employees in 401(k) plans, coupled with increasing contributions each year (unless an employee opts out), actually boost savings?

As you have seen in this chapter, many employers are offering company-sponsored savings programs known as 401(k) plans. While experts advice that workers need to save about 15 percent of their annual salaries each year to be able to retire comfortably, many, if not most, do not save that much. In an attempt to change those' behaviors, some employers are raising their contributions, both to attract and retain employees, and also to ensure that older workers retire on time to make room for younger ones.