Adoption of automatic enrollment and automatic escalation continues to rise—now at 51% and 46% respectively, vs. 48% and 23% last year. Yet, their future growth may depend on acceptance among smaller plans—i.e., those having under $50 million in plan assets. Less than 50% of those plans have implemented either feature vs. the more than 75% of plans with over $200 million that have implemented one or both. When offered, target-date funds (TDFs) remain the dominant default investment option, as usage increased for the fifth year in a row and now stands at 76%.
Plans Using Automatic Features
Average Plan Participation Rates, by Features Offered
Trend in Plans Using a TDF for the Default Investment