Our research shows that the vast majority of plan sponsors recognize that automatic enrollment has been effective in improving plan success and simplifying internal plan administration. Could automatic enrollment’s success be improved upon? When automatic enrollment first began gaining popularity, about 20 years ago, its typical design served a number of purposes. It improved plan enrollment and made for more efficient administration (no more “herding … Continue reading Improving Automatic Enrollment
The advent of automatic features in DC plans has had a positive impact driving retirement readiness by boosting participation and savings rates, especially among workers newer to the job. 73 percent of large and mega plans use auto-features, such as auto-enrollment and/or auto-escalation, to encourage greater savings in the DC plan.1 Through automatically enrolling new hires to the plan, and directing them to the qualified … Continue reading Reversing Inertia: How re-enrollment boosts positive investment behaviors and participant outcomes automatically.
Nine years have passed since the Pension Protection Act of 2006 virtually blessed automatic enrollment for defined contribution plans and almost 15 since we at 401(k) Advisors began advocating the same. Has automatic enrollment turned out to be the panacea intended? In 2007, 401(k) Advisors worked with a financial services center whose plan participation languished below 50%. Since the client had multiple branch offices of minimum … Continue reading Case Study: Automatic Enrollment Revisited