Magazine

UpFront | Published in December 2016

Key Features Empower Young Participants

Which design features motivate which plan participants?

By PLANSPONSOR staff | December 2016

Key Features Empower Young Participants

Ages 21-27
Ages 28-34
Ages 35+

401(k) participation tends to be low among the youngest employees:

38%
60%

But smart plan design can help dramatically increase young participant engagement.

If a plan has automatic enrollment, participation increases to:

78%
88%

Among plans with an automatic-increase feature, younger employees account for more than half of all contribution increases:

34%
21%
45%

Mobile features help drive engagement, with participants ages 21 through 34 representing 55% of all mobile enrollments.

55%
Source: Bank of America Merrill Lynch, Plan Wellness Scorecard

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