Auto-enrollment

Auto-enrollment is a process where employees are automatically enrolled into a retirement savings plan, such as a pension scheme or 401(k), by their employer. Employees are typically enrolled by default but can choose to opt out if they prefer. This approach encourages more people to save for retirement by making participation automatic, reducing the need for active decision-making. It benefits both employees—by helping them build savings—and employers—by promoting a more engaged and prepared workforce. Auto-enrollment simplifies retirement planning and increases overall participation in retirement saving programs.