Automatic Enrollment

Automatic enrollment is a policy or practice where individuals are automatically signed up for a program or service, unless they choose to opt out. Commonly used in retirement savings plans, this means employees are automatically enrolled in a pension or savings plan when they start a job, helping them save for the future without needing to take any action. The goal is to increase participation rates and improve financial security, making it easier for people to save by removing barriers to entry and encouraging a habit of saving from the outset.