The Impact of Automatic Enrollment in 401(k) Plans on Future Retirement Accumulations: A Simulation Study Based on Plan Design Modifications of Large Plan Sponsors
New research from the nonpartisan Employee Benefit Research Institute (EBRI) finds that auto-enrollment of participants in 401(k) plans is likely to be most beneficial to young and low-income workers, although high-income workers are likely to benefit from it as well. It also confirms earlier results that large employers adopting auto-enrollment have significantly increased the employer “match” to their workers’ own 401(k) contributions.