Employees surveyed were nearly unanimous in their support of being automatically enrolled—98% were happy their employer offered the savings vehicle. Most respondents felt the programs made saving for retirement easier (95%), and 85% thought it helped them start saving for retirement earlier than they originally planned.
Of those automatically enrolled, only 7% opted out of the plan.
According to RSP, companies using automatic 401(k)s typically see participation rates between 85% and 95%, in addition to increased participation among young, minority and lower-income workers.
Source: Financial Industry Regulatory Authority, www.finra.org .