• Education
  • Politics
  • Science & Technology
  • Top Stories
  • Health

Logo

Navigation
  • Home
  • Business
  • Entertainment
  • Fashion
  • Lifestyle
  • Sports
  • Top Stories
  • Subscribe

More employers put 401(k) savings on autopilot

By jennifer | on December 28, 2021 |
Business Entertainment Lifestyle Politics Top Stories

About 62% of businesses with a 401(k) automatically enroll workers into the retirement plan, according to the Plan Sponsor Council of America.
2020 was the first year employers most commonly used a 6% “deferral” rate, rather than 3%.
Automation comes as many workers feel they’re falling behind on savings and as they shoulder more individual responsibility to prepare.

Employers are increasingly putting retirement savings on autopilot for their workers.

About 62% of businesses with a 401(k) plan used automatic enrollment in 2020, up from 60% the year prior and 46% a decade ago, according to the Plan Sponsor Council of America, a trade group.

This feature lets an employer divert a portion of workers’ paychecks into a 401(k), either immediately or after a few months, if that worker hasn’t signed up voluntarily.

Auto-enrollment leverages worker behavior (inertia, in this case) to their advantage. Workers receive a paper or digital notification ahead of time and can opt out — but most do not.

Vanguard Group, one of the largest 401(k) providers, found that 92% of new hires were still saving in the 401(k) plan three years after being automatically enrolled; in plans with voluntary enrollment, just 29% were still saving.

[KNOW MORE…]

Share this story:
  • tweet

Author Description

Recent Posts

  • Kegel Ball for Women Vaginal Weight Set
  • DG-Direct Anti-Theft Video Doorbell Door Mount
  • IPX5 Waterproof Hi-Fi Stereo 5.0 Earbuds
  • Madonna and Tokischa Simulating Sex Acts During Performance
  • Saw Palmetto Prostate Supplements for Men

Subscription


  • All Categories
    Specific Categories

Make sure you do not miss interesting news by joining our newsletter program.
We do not do spam





By clicking on Subscribe, I confirm that I have read and agree to the terms set forth in the Privacy Policy and Terms of Service including TimesOfUs’s ability to use and share my information and TimesOfUs, or third-party companies and business partners, may send me offers for products and services at the email address I have provided. I understand that my information may be supplemented with additional information obtained from other sources.

Video widget

Tags

Apple applenews Capito Donald Trump Edwards’ statement Four GOP senators gadgetry gadgets Gaming gear Hillary Clinton Jerry Moran John Thune Kim Kardashian LaVar Bal Maci Mackenzie Standifer Mcconnell Michael Jordan Mike Lee Mitch mobile Obama Care Politics pop star President Obama Rand Paul Rihanna Rob Portman rock the boat. Ron Johnson Russia Russian meddling Russia scandal Ryan Edwards Sen. Ron Johnson Sen. Susan Collins Shelley Moore Susan Collins Teen Mom OG The Ball family Trump White House wwe Xanax

Recent Posts

  • Kegel Ball for Women Vaginal Weight Set
  • DG-Direct Anti-Theft Video Doorbell Door Mount
  • IPX5 Waterproof Hi-Fi Stereo 5.0 Earbuds

Times of US

Timesofus(TOUS) is a Comprehensive up-to-date news coverage, aggregated from sources all over the world.Times of US is a collection of online news and information with powerful news brands that deliver compelling, diverse and visually engaging stories of your choice.
  • Privacy Policy
  • Terms Of Service
  • Contact Us
  • Do Not Sell My Information
© 2022. All Rights Reserved. Times of US | Privacy Policy