The Cloud Hovering Over 401k Automatic Enrollment

March 15, 2018
Terry Dunne, SVP and Managing Director - Retirement Services

Automatic enrollment, along with automatic deferral escalation, was the brainchild of experts in behavioral finance who theorized that employee inertia could be used to improve retirement outcomes. While auto-enrollment has improved participation and encouraged saving, participant inertia has created new challenges for plan sponsors. In recent years, the number of accounts left behind by plan participants who leave companies has grown.