A study by Deloitte Research found that 42 percent of employers are using automatic enrollment for their 401(k) plans, almost double the percentage from the 2005-2006 survey; another 26 percent of employers are thinking of adding the feature. Eighty-two percent of employers who already use automatic enrollment reported increased participation rates.
|Lifecycle funds were overwhelmingly popular, with 63 percent of plans using those funds as a default option. Balanced funds were used in 15 percent of plans and lifestyle funds in 9 percent.
|Roth 401(k)s nearly doubled as well, jumping from 12 percent in 2005-2006 to 23 percent in the most recent study. Ten percent of employers are planning to add Roth 401(k)s and another 18 percent are thinking about adding them.
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