From CNBC: 2024-08-28 15:15:34

Employers are increasingly using automatic enrollment for workers’ 401(k) savings, but new research shows factors like cashing out balances reduce the effectiveness. Behavioral economists found auto-enrollment raises contributions by 0.6% over careers, less than previous estimates. Leakage from early withdrawals impacts plan effectiveness, illustrating room for improvement in automated savings.

Read more: 401(k) auto-enrollment less effective than expected, study says