New analysis from The Principal shows automatic enrollment features in 401(k) plan designs can drive better savings behavior without dramatically affecting participation.

However, Barrie Christman, vice president of individual investor services at The Principal points out most plan sponsors tend to set their default rate at an insufficient level.

Employers offering automatic enrollment in 401(k) plans must choose a default investment fund and savings rate, requiring employees to actively opt-out if they choose not to participate. Participating employees accept the default fund at the default rate, or select different funds and rates.