The automatic 401(k) is sweeping the defined contribution landscape. For employees, saving for retirement is automatic. They are enrolled at a pre-set contribution level into pre-selected investment funds and are in the plan unless they opt out.
With an automatic 401(k), not only will your employees save more for retirement and experience greater job satisfaction, it will generally be easier for your company to pass nondiscrimination testing.
We’ve set out with one goal in mind — to simplify and demystify the Automatic 401(k) process. So it only makes sense to make getting started as clear and easy as possible.
2008 401(k) Benchmarking Survey shows strong gains in automatic enrollment adoption, satisfaction
This year's survey—conducted by Deloitte, the International Foundation of Employee Benefit Plans and the International Society of Certified employee Benefits Specialists—confirms that dramatic gains have been made in the adoption of automatic enrollment: "42% of the employers surveyed now have an auto-enrollment feature—nearly double from the last Survey (23%). And 26% of this year’s Survey respondents reported they are considering adding an auto-enrollment feature—perhaps with some knowledge of the high (96%) satisfaction rate expressed by employers who have made the switch to auto-enrollment."
Read the Survey
Organizations around the country are proponents of automatic 401(k)s Automatic 401(k) Proponents
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AARP's Chief Operating Officer Tom Nelson on Automatic 401(k) implementation Download the Article