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.