Automatic Enrollment

Explore commonly used personal finance terms.

Automatic enrollment is a feature in employer-sponsored retirement plans (such as a 401(k)) where employees are automatically enrolled in the plan at a predetermined contribution rate unless they opt out. This practice helps increase participation rates in retirement savings plans, providing employees with a convenient way to start saving. Automatic enrollment typically includes default investment options that align with general retirement goals, encouraging long-term savings and facilitating financial security among employees.

Oops! Something went wrong while submitting the form.