Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Retirement Planning > Retirement Investing

Principal: More Retirement Plans Adopt Auto Enrollment Programs

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

Employers that set up a 401(k) plan automatic enrollment program for new hires end up with significantly higher participation rates than other employers.

The average participation rate was 75% at auto enrollment plans in 2006, compared with an average participation rate of 68% at standard enrollment plans, according to researchers at Principal Financial Group Inc., Des Moines, Iowa.

The Principal researchers drew the figures from operating results for 38,600 full-service retirement plans served by Principal.

The typical default deferral rate at auto enrollment plans is either 3% or 4%, and, even before regulators came out with a final regulation excluding stable-value funds from a list of standard default investment options, the most popular default investments were lifestyle, lifecycle and asset-allocation funds, the Principal researchers report.

The Principal analysis also covers defined benefit plans, non-qualified plans and employee stock ownership plans.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.