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We talk a lot about automatic enrollment and automatic escalation. We also love to study industry data indicating related trends, which helps when our clients ask: “How many employers use automatic enrollment?” Results from a recent Callan survey show that the answer continues to be: “More than half, and more and more each year.”

Take note of these interesting results from the 2018 Defined Contribution Trends Survey:

  • 71% of plans use automatic enrollment
  • Slightly more than 25% apply it to not only new hires, but have also applied it to existing employees
  • Of those that do not use automatic enrollment, another 10% are very likely to implement the feature in 2018
  • 80% of the private sector plans with automatic enrollment are pairing the feature with automatic escalation
  • The average default enrollment percentage has increased to 4.6%, a sharp increase from 4.0% only a couple of years ago

These trends are encouraging. They reflect that plan sponsors have identified automatic enrollment and automatic escalation as a way to make saving – at a meaningful rate, nonetheless – easier for their employees. They also likely reflect that plan sponsors have become more educated and understand that their employees appreciate automatic features.

Matt Eickman

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Matthew loves to write. He also loves to think, though he’s probably a better writer than a thinker. He does not like to be on camera or in videos. This blog will allow him to write, challenge his ability to think, and, from time to time, test him with video blog entries.
Matt Eickman

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